Despite strong interest from Senate Democrats, including Elizabeth Warren, in addressing the illicit movement of funds in the cryptocurrency space, there are no immediate plans within the committee to take action, according to sources familiar with the matter. Some Democrats on the Senate Banking Committee are advocating for legislation to tackle perceived vulnerabilities in crypto that could be exploited by criminals and terrorists. However, the committee is currently focused on other priorities, and there is no imminent plan to address crypto legislation.
Chairman Sherrod Brown has emphasized the importance of cracking down on illicit finance, particularly in the context of cryptocurrencies. While there is a growing consensus among committee members about the urgency of crypto oversight, there is no scheduled markup for a bill at this time. Elizabeth Warren's legislative efforts aim to extend anti-money laundering (AML) requirements to various participants in the crypto ecosystem, and similar bipartisan bills from other senators focus on addressing criminal use of cryptocurrencies.
Deputy Secretary of the Treasury Wally Adeyemo has advocated for additional powers to enable Treasury officials to enforce regulations and sanctions across borders. Despite expressed concerns about the potential impact of Warren's bill, particularly from the Chamber of Digital Commerce, no specific proposal from Chairman Brown has emerged.
Chairman Brown's emphasis on combating the use of crypto for terrorism and sanctions evasion has not translated into a concrete legislative proposal. The House Financial Services Committee has approved several bills related to crypto market structure and regulation, but the path forward for crypto legislation in the Senate remains uncertain, with potential challenges in garnering bipartisan support and aligning with House priorities.