Elizabeth Warren is leading a group of senators pushing for stricter cryptocurrency regulation.

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Senator Elizabeth Warren and five fellow senators are supporting the “Digital Asset Anti-Money Laundering Act,” which aims to strengthen regulations on the use of cryptocurrencies in illicit finance. The bill, which has drawn criticism from the cryptocurrency industry, extends financial regulation under the Bank Secrecy Act to miners, validators and wallet providers.

Three new sponsors, Senators Warnock, Butler, and Van Hollen, have joined the Senate Banking Committee, hinting at a potential role for the committee in enacting cryptocurrency-related legislation. Senator Hickenlooper and Representative Luján also joined as co-sponsors.

Van Hollen highlighted concerns about the lack of regulation of cryptocurrencies and highlighted the risks they pose and their misuse by criminal groups. Warren defended the bill at a congressional hearing amid calls from the Treasury Department for more authority to root out illegal cryptocurrency activity.

There is increasing focus on anti-money laundering efforts involving cryptocurrencies, with Rep. McHenry suggesting that the House of Representatives should review such regulations, hinting at possible collaboration between the House and Senate. McHenry, who will not seek re-election, has been influential in pushing for cryptocurrency-related legislation aimed at regulating stablecoins and comprehensive market structures, which require Senate support.

Warren’s reaction to the bill

Senator Warren emphasized in a CNBC interview that her bill is not just about America. It’s global. She pointed out that countries like North Korea are using cryptocurrencies like Bitcoin to finance their nuclear weapons programs. This shows how digital currencies can be misused not only within the United States but also internationally.

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