Elizabeth Warren and 100 Lawmakers Push Biden on Crypto-Terrorism Action, Despite Less Than 1% Illicit Use

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Elizabeth Warren, the Democratic senator from Massachusetts, is alarmed by the potential of crypto-fueled terrorism. She has rallied over 100 policymakers and approached the Biden administration, urging the executive branch to tackle this pressing issue. The news follows Warren’s recently introduced “Digital Asset Anti-Money Laundering Act.”

Warren Leads Charge Against Crypto’s Role in Terrorism; Seeks Biden Administration’s Strategy by October 2023

In the midst of the tensions between Israel and Hamas, Elizabeth Warren, alongside over 100 legislators, penned a bipartisan note on Wednesday to two Biden administration officials. Their alarm stems from reported evidence indicating that Hamas evaded U.S. sanctions, securing millions through crypto assets. These congressional members are now pressing the Biden administration to explain its strategy to curb crypto-aided terrorism.

Warren’s statement underscored her firm stance on the need for stringent regulation and supervision of the crypto industry. The press statement insists this advocacy aims to curb rampant illicit actions, safeguard consumers, and ensure the financial system’s stability and security.

“That the deadly attack by Hamas on Israeli civilians comes as the group has become ‘one of the most sophisticated crypto users in the terror-finance domain’ clarifies the national security threat crypto poses to the U.S., and our allies,” the letter from 100 policymakers details.

The letter adds:

Congress and this administration must take strong action to thoroughly address crypto illicit finance risks before it can be used to finance another tragedy.

Traditional fiat currency, however, remains the dominant choice for many financial misdemeanors, such as money laundering and terrorist financing. Numerous studies, research reports, and fact-checks corroborate this claim and show that the anonymity of cash makes it a favored tool in illicit activities. Coinbase’s April 30, 2021, fact-check details:

One of the most common but false notions about crypto is that it is mostly used by bad actors for illicit financing. This is just not true. According to research conducted by numerous blockchain analytics companies, illicit activity accounts for less than 1 percent of cryptocurrency transactions.

Despite these findings, Warren and her consortium of legislators are seeking clarity on the Treasury and Biden administration’s strategies to counteract the grave national security risks associated with crypto’s alleged role in terrorist financing. The group of lawmakers are expecting answers by October 31, 2023. The letter was addressed to Brian Nelson, the under-secretary for Terrorism and Financial Intelligence at the Department of the Treasury and National Security advisor Jake Sullivan.

What do you think about Elizabeth Warren’s letter backed by 100 lawmakers? Share your thoughts and opinions about this subject in the comments section below.