Senator Elizabeth Warren emphasized the significance of strengthening law enforcement within the cryptocurrency sector during a recent interview with CNBC’s Squawk Box.
Senator Warren emphasized that a review of the Bank Secrecy Act is necessary to address the issues raised by the cryptocurrency sector.
- Cryptocurrency is being used for crimes like “terrorist financing” and “drug trafficking.”
- North Korea is utilizing crypto to fund around half of its nuclear weapons program budget.
- Rules must adapt to this “new threat” through updating existing Bank Secrecy Act law.
- There is a need for a universal consensus among banking chiefs that crypto deserves equivalent oversight to traditional finance.
Warren calls crypto a threat
Senator Warren stated her concerns about crypto, “What we need to do is we need to update it again because there’s a new threat out there. It’s crypto, and it is being used for terrorist financing; it is being used for drug trafficking.”
According to Warren, North Korea finances around half of its nuclear weapons program with cryptocurrencies. Warren stressed in the interview how important it is to deal with this problem. She also spoke about the SEC and the Bitcoin ETF during the interview.
Warren’s sense of urgency supports her belief that the cryptocurrency market is becoming a hub for a growing number of illegal operations. Among them were the support of narcotics trafficking and the financing of terrorism.
The statement follows a significant Senate Banking Committee hearing in which prominent bank CEOs, including Jamie Dimon of JPMorgan, spoke. During the meeting, there was an uproar for increased regulation. Dimon also expressed during the meeting that if he were part of the government, he would choose to shut down the crypto industry entirely.