Senator Elizabeth Warren Pushes for Enhanced AML/CFT Measures in Stablecoin Regulation
Summary:
US Senator Elizabeth Warren has expressed her support for enhanced Anti-Money Laundering and Combating the Financing of Terrorism (AML/CFT) measures for stablecoins in a letter to Treasury Secretary Janet Yellen. She emphasized the importance of incorporating necessary AML tools provided in the Treasury's November 2023 letter to Congress to halt terrorism financing. She also addressed the need for a firm regulatory framework for the $157 billion strong stablecoin market.
US Senator Elizabeth Warren has provided Treasury Secretary, Janet Yellen, with her thoughts on Wally Adeyemo's (Deputy Treasury Secretary) Senate Banking Committee address conducted April 9. The senator's remarks were centered around Anti-Money Laundering and Combating the Financing of Terrorism (AML/CFT) as they were during the original committee hearing. In her written correspondence, Senator Warren advocated for augmented AML/CFT legislation for stablecoins. During the senate meeting, Adeyemo outlined potential enhancements to the Treasury's sanctions power, with blockchain validator node operators being among them. The recommended advancements were listed in a Treasury document tagged as a 'letter to Congress' from November 2023, filling the void left by current regulations, as Senator Warren highlights. In Warren's understanding, such authoritative powers should be legislated into any congressional progress made in forming a new regulatory ecosystem for the stablecoin market, valued at $157 billion. Her focus wasn't on the stablecoin legislation brought forward on April 17 by Senators Kirsten Gillibrand and Cynthia Lummis - just a day after her letter. The lengthy Lummis-Gillibrand bill, covering 179 pages, sparsely discusses AML/CFT. Warren's preference was perhaps leaning towards an impending bill from the House of Representatives, led by Patrick McHenry (Finance Committee chair) and supported by ranking member Maxine Waters. In fact, similar apprehensions were communicated to them by Warren on April 8. Concluding her letter to the Treasury Secretary, Warren insisted any legislation surrounding stablecoins should integrate all AML tools recommended by the Treasury in its November 2023 letter to Congress as fundamental to combat financing of terrorism. Taylor Barr, Senior Policy Associate at Digital Chamber, in an attempt to grasp the perspective of Senator Warren concerning the Lummis-Gillibrand bill asked notably about enhanced consumer protection, added receivership clauses, and the enforcement capacity of Federal Reserve/OCC - elements currently absent from the senator's priority list.
Published At
4/18/2024 12:42:53 AM
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