Crypto Industry Needs ‘Light’ Regulatory Framework to Combat Risks: US Sen. Thom Tillis

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The US Republican Senator Thom Tillis has called for a new regulatory framework for the crypto industry, which would “create the most hospitable environment for digital assets to thrive.”

During the Senate Banking Committee meeting on Tuesday, Tillis stressed “light” regulation to help curb illicit crypto financing. His remarks came after Deputy Treasury Secretary Adewale Adeyemo addressed the urgency of regulating cryptos due to national security risks.

“One thing I’d tell people in the crypto or digital assets space that say ‘Nothing to see here, everything is fine’ – they’re wrong,” Sen. Tillis noted.

“There needs to be some light regulatory regimen put into place, otherwise there are risks. We want to create the most hospitable environment for digital assets to thrive.”

Senator Tillis added that the crypto regulation would “vastly” differ if there is a change of administration after November elections.

During the meeting, Adeyemo testified about the efforts made by the Treasury to counter illicit finance, sanctions evasions and terrorism.

Banking Committee chair Sherrod Brown released a document supporting the Treasury’s enforcement goals before Adeyemo’s testimony. According to Brown’s statement, he called for the right “tools” to crack down on illicit finance with digital assets.

“We must make sure that crypto platforms play by the same rules as other financial institutions.”

The meeting also saw ranking member Tim Scott praising Treasury’s work, however, he focused on foreign policy issues.

Tillis Submit Discussion Draft on Crypto Illicit Finance

Sen. Tillis, along with Sen. Bill Hagerty, presented a draft proposal of crypto illicit finance bill on Monday. The legislation is aimed at ensuring centralized cryptocurrency companies adhere to Bank Secrecy Act (BSA) and anti-money laundering (AML) standards.

Tillis stressed the urgency to stop bad actors who launder with cryptocurrency. The discussion paper acts towards “right-sizing” approach to crypto regulation, while preserving digital innovation, he added.

“Congress needs to focus on right-sizing its regulatory approach to cryptocurrency, which requires building consensus among lawmakers, law enforcement, and stakeholders to protect consumers and fight illicit actors.”

The bill also called for the use of a powerful illicit finance policy “tool” against transactions involving crypto money laundering.

US Senators including Sen. Elizabeth Warren, and Sen. Mark Warner have been advocating for more crypto regulations. Sen. Warren said, “Name your bad guy, and crypto is the way they can move money around.”

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