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United States Senator Elizabeth Warren is preparing a bill to crack down on the use of crypto as a way to avoid economic sanctions. <\/p>\n
Warren\u2019s latest anti-crypto move comes alongside a push from the U.S. government to stamp out the possibility of Russia using crypto to skirt a host of economic sanctions<\/a> placed on the nation. <\/p>\n According to a Tuesday report from NBC News, one of the provisions of Warren\u2019s new crypto bill \u2014 still in its draft form \u2014 will require local crypto exchanges to submit \u201cdetailed records\u201d to the Treasury Department of customers\u2018 identities and transfers to private crypto wallets. <\/p>\n It also aims to \u201cforce companies to choose between doing business in the U.S. or with sanctioned people and entities by threatening secondary sanctions on foreign crypto exchanges.\u201d<\/p>\n The Treasury Department\u2019s Financial Crimes Enforcement Network (FinCEN) is also working toward drafting similar requirements based on Warren\u2019s bill, according to NBC.<\/p>\n Ukraine\u2018s deputy minister of digital transformation Alex Bornyakov has been calling for crypto exchanges to ban Russian users for the past week or so. However, top crypto exchanges such as Binance<\/a>, Coinbase<\/a> and Kraken<\/a> have all said they won\u2018t implement a blanket ban but have emphasized their commitment to being compliant with U.S. sanctions.<\/p>\n Senator Warren has been highly skeptical of the sector for quite some time now. In 2021 alone, she labeled DeFi<\/a> as the \u201cmost dangerous\u201d part of crypto, introduced a bill to study crypto\u2019s role in ransomware<\/a> and slammed the Ethereum network for its high fees during a committee hearing. So, it\u2018s little surprise to industry observers she has seized the opportunity to push for tougher regulations.<\/p>\n Warren, who was among a group of Senators <\/a>to write to Treasury Secretary Janet Yellen about the issue last week, noted on Twitter earlier today that her bill will \u201censure crypto isn\u2018t used by Putin and his cronies to undermine our economic sanctions.\u201d<\/p>\n I’ll be speaking soon with @Mitchellreports<\/a> on @MSNBC<\/a> about my new bill to ensure crypto isn’t used by Putin and his cronies to undermine our economic sanctions. Hope you’ll tune in! https:\/\/t.co\/H8iTnA5Ulw<\/a><\/p>\n \u2014 Elizabeth Warren (@SenWarren) March 8, 2022<\/a><\/p><\/blockquote>\n While the idea of Russia using crypto to evade sanctions has been grabbing the headlines, experts such as Jake Chervinsky, head of policy at crypto policy promoter the Blockchain Association have argued that the nation \u201ccan\u2019t and won\u2019t use crypto to avoid sanctions.\u201d<\/p>\n Chervinsky cited the scale of the Russian state\u2018s monetary needs exceeding the capabilities of crypto markets, sanctions barring U.S. businesses and citizens from transacting with Russia regardless of the payment used and a lack of Russian crypto infrastructure to support the demand. His arguments did not address the question of individual Russians using crypto to evade sanctions, however.<\/p>\n Warren\u2019s regulatory push comes just a week after Federal Reserve Chair Jerome Powell and a group from the House of Representatives called for congressional action on crypto<\/a> in relation to Russia. <\/p>\n Powell stated that the situation with Russia emphasizes the need to introduce robust regulatory frameworks in the sector \u201cto prevent these unbacked cryptocurrencies from serving as a vehicle for terrorist financing and just general criminal behavior, tax avoidance and the like.\u201d<\/p>\n Related: <\/em><\/strong>Bitcoin stems losses after US bans Russian oil, gold heads to record highs<\/em><\/strong><\/a><\/p>\n\n