Senator Elizabeth Warren expressed willingness to engage the crypto industry if players in the industry adhere to regulatory standards akin to those in traditional finance.
In a Feb. 27 Bloomberg interview, Warren said:
“I want to collaborate with the industry, what I don’t understand is why the industry seems to be saying that they only way that they can survive is if there’s plenty of space for the drug traffickers and the human traffickers.
Oh and the terrorist, and the ransomware scammer, and the consumer scammers and the rogue nations, North Korea that is financing about half of its nuclear missile program with crypto, that all of that has to be left open.
Warren’s stance towards crypto has faced steep criticism from stakeholders within the burgeoning industry who argue that her policies drive innovation overseas.
Notably, a prominent pro-crypto lawyer challenging her seat in the Senate, John Deaton, accused Warren of engaging in a “politics of division and destruction.”
“Level playing field”
Senator Warren emphasized the need for uniform regulatory standards across the US financial landscape, urging the crypto sector to adhere to existing rules. The lawmaker noted that major traditional financial entities, including banks, credit unions, and stockbrokers, abide by the established regulations, whereas the crypto industry operates outside this framework.
“In our financial system, pretty much everybody follows the same set of rules. I’m talking banks and credit unions and credit card companies, gold traders and stockbrokers. Private equity now has to follow the rules. Precious metal dealers, Venmo, Western Union, but not crypto,” she explained
In advocating for regulatory parity, Warren highlighted the similarity in activities and associated risks between traditional and crypto finance. She stressed the importance of enforcing existing laws rather than creating new regulations. She added:
“I just want a level playing field here if you’re part of the financial system moving around literally billions of dollars. Remember, my bill is not a regulatory bill. It’s a bill about law enforcement.”
Her proposed legislation, the Digital Asset Anti-Money Laundering Act, seeks to bring the crypto ecosystem into greater compliance with anti-money laundering frameworks governing the traditional financial system.
Despite criticism from some corners of the crypto industry, the bill has garnered significant support from several US lawmakers.
