Following the reports from WSJ, it is observed that the pressure from politicians in the U.S. on the cryptocurrency sector has increased. Despite reports that crypto’s share in criminal revenues is at most 0.5%, the sector is seen as a scapegoat.
The “Anti-Money Laundering in Cryptocurrency Act” prepared by Warren and supported by many U.S. politicians is under consideration. It is known that Democrats are against cryptocurrencies, and if Republicans also support it, this proposal could easily become law.
Cryptocurrencies now have a formidable enemy. If the desired powers and restrictions become implementable, DeFi could vanish for American citizens. Additionally, Senators may press for the law to be applied globally.
Senator Warren, in an interview in June 2021, characterized the crypto market as the “Wild West” and saw it as a disaster. In October 2023, she expressed her concerns about North Korea using cryptocurrency to circumvent international sanctions and fund illegal weapon programs by sending a letter to the U.S. Treasury Secretary.
In September 2023, she announced that she had expanded the support coalition in the Senate for the Digital Asset Anti-Money Laundering Act. That same month, she mentioned the necessity of fighting against the threats created by crypto, stating that half of North Korea’s missile program was financed by crypto crimes.