US Senator Elizabeth Warren has issued a strong call for enhanced oversight of the cryptocurrency sector in a detailed letter to Scott Bessent, Donald Trump’s pick for Treasury Secretary . Warren, poised to lead as the top Democrat on the Senate Banking, Housing, and Urban Affairs Committee, emphasized the need for stricter Anti-Money Laundering (AML) and Counter-Terrorism Financing (CTF) measures targeting the digital asset industry. In her January 12 letter , Warren argued that cryptocurrencies have become a favored tool for bad actors engaged in activities such as money laundering, sanctions evasion, and financing threats to national security. Specifically, she cited concerns about Russia’s invasion of Ukraine, North Korea’s nuclear ambitions, and ransomware attacks. “Bad actors are increasingly turning to cryptocurrency to enable activities that threaten global security,” Warren further wrote. She proposed expanding the Treasury’s powers to impose secondary sanctions on financial technology and crypto operators with ties to the US market. Additionally, Warren questioned whether the Office of Foreign Assets Control should regulate stablecoins and if the Treasury’s Bank Secrecy Act (BSA) authority should extend to overseas crypto entities servicing US clients. A Robust Opening Salvo from Senator Warren Alexander Grieve, vice president of government affairs at Paradigm, a crypto investment firm, commented on Warren’s letter, calling her questions reasonable but cautioning against a broader agenda to expand AML regulations. He suggested Warren’s approach might pave the way for stringent oversight targeting neutral crypto technology providers. Grieve noted the letter as a “robust opening salvo,” signaling that Warren will likely be an active force in shaping crypto policy as a minority member of the Senate Banking Committee. This isn’t Warren’s first attempt to clamp down on the crypto industry. In 2022 and 2023, she introduced the Digital Asset Anti-Money Laundering Act , seeking to subject the sector to existing AML and CTF frameworks. Critics, including the Chamber of Digital Commerce and national security officials, argued that such legislation could hinder law enforcement and push the crypto industry offshore. Pro-Crypto Sentiment Grows in Congress Warren’s push for regulation coincides with a shifting political landscape. President-elect Trump, who campaigned on a pro-crypto platform, is set to take office on January 20. Alongside him, hundreds of pro-crypto candidates have secured congressional seats, fueling speculation that the next administration could adopt the most crypto-friendly policies in US history. With Warren’s open letter and the upcoming confirmation hearing for Bessent on January 16, the battle over crypto regulation in the US is set to intensify. The post Elizabeth Warren Urges Stricter Crypto Regulations in Open Letter appeared first on TheCoinrise.com .
