Senator Elizabeth Warren and 28 other senators and 76 House members have written a letter to key figures in the Biden Administration. The letter addresses the administration's stance and actions concerning the utilization of cryptocurrencies in funding terrorism.
The letter, signed by many lawmakers from both sides of the aisle, was sent on October 17th to Brian Nelson, the Treasury Under Secretary for Terrorism and Financial Intelligence, and National Security Advisor Jake Sullivan.
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The letter highlights a news report claiming that groups like Hamas and the Palestinian Islamic Jihad amassed over $130 million in crypto donations from August 2021 to June 2023.
In particular, the letter from high-ranking US Congress members read:
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 US, and our allies.
The lawmakers urged quick and decisive action to clamp down on illicit crypto activities, posing nine specific questions to the administration. These questions seek to probe what the government knows about the backers of terrorism, the measures being taken against cryptocurrency financing of terror, and what additional resources might be needed.
The letter boasts signatures from notable figures who have previously been vocal in their opposition to cryptocurrencies, such as Roger Marshall and Sean Casten. Senate Banking Committee Chair Sherrod Brown, although not an explicit supporter of Senator Warren's Digital Asset Anti-Money Laundering Act, also endorsed the letter. Conversely, crypto advocates like Cynthia Lummis, Kirsten Gillibrand, and Patrick McHenry did not sign it.
Known for her skepticism about cryptocurrencies, Senator Warren has been at the forefront of legislative attempts to regulate the digital asset industry.
The bipartisan letter represents a concerted effort by US lawmakers to prompt the administration into action regarding the role of cryptocurrencies in financing terrorism. As the government's scrutiny of digital assets intensifies, this collaborative action by lawmakers signals a growing concern and could potentially pave the way for stricter regulations on cryptocurrencies.
