Elizabeth Warren Calls for Crypto to Follow Traditional Finance Rules
Senator Elizabeth Warren said in an interview Tuesday that she is willing to work with the crypto industry. However, she believes it must follow the same anti-money laundering rules and regulations as traditional financial institutions.
“I want to collaborate with the industry. What I don’t understand is why the industry seems to be saying that the only way that they can survive is if there’s plenty of space for the drug traffickers and the human traffickers,” Sen. Warren told Bloomberg Television.Â
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Warren has been an outspoken critic of the cryptocurrency sector. She recently introduced anti-money laundering legislation that would extend existing Bank Secrecy Act rules, such as customer due diligence procedures, to crypto entities like miners, transaction validators, and digital wallet providers.
Key Points:
- Recently pushed an anti-money laundering bill to extend regulations to crypto miners, validators, and wallet providers.
- Reiterated view that crypto should follow the same rules as traditional finance like banks, credit cards, and stockbrokers.
- Sees similar risks in crypto as other parts of the financial system.
- Open to collaboration but wants protections against illegal activity to remain.
Senator insists closing crypto money laundering loopholes
In Warren’s view, the cryptocurrency industry facilitates the same kinds of high-risk activities as traditional finance, including money laundering, terrorism financing, fraud, and evading sanctions.
She argued that crypto doesn’t need its own specialized regulations, but that existing laws need to be properly enforced.
“I just want a level playing field here if you’re part of the financial system moving around literally billions of dollars,” Warren said. “My bill is not a regulatory bill. It’s a bill about law enforcement.”
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Warren has pushed back against claims that regulations would make it impossible for the crypto industry to survive.
The Senator’s comments highlight the ongoing debate around finding the right approach to regulating the cryptocurrency industry.
Warren made it clear that she is open to engagement but believes firmly that consumer protections and national security should remain top priorities as crypto integration increases.
