Senator Elizabeth Warren is challenging the push for a stablecoin bill without anti-money laundering laws, citing national security risks in a letter addressed to House Financial Service Committee leaders Patrick McHenry (R-NC) and Maxine Waters (D-CA).
In her letter, Warren warns of potential risks associated with stablecoin regulation, emphasizing concerns about consumer protection, banking system stability, and national security threats.
The letter comes amid discussions about McHenry’s “Clarity for Payment Stablecoins Act,” which proposes increased regulation for stablecoins akin to traditional financial institutions.
Warren’s advocacy for the Digital Assets Anti-Money Laundering Act (DAAMLA) was reinforced during a recent Senate hearing, where she underscored the importance of anti-money laundering laws in stablecoin regulation efforts.
Long known for her stance against cryptocurrencies, Warren’s proactive measures reflect her commitment to imposing stringent oversight on the crypto industry, particularly regarding illicit financial activities.
Despite the pushback, stakeholders like Circle CEO Jeremy Allaire remain optimistic about the passage of stablecoin legislation in 2024, highlighting ongoing momentum in regulatory discussions.
Warren’s letter underscores her unwavering dedication to crypto regulation, although the outcome of legislative consensus remains uncertain.
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