Warren Demands Bessent’s Plan to Shield the U.S. from Crypto Threats
Senator Elizabeth Warren has posed tough questions to Scott Bessent, the nominee for U.S. Treasury Secretary, with a focus on his stance toward cryptocurrency regulation. This was revealed in a post on X by Fox Business journalist Eleanor Terrett.
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The timing of Warren’s inquiry coincides with reports that Bessent plans to divest assets, including his stake in Bitcoin spot ETFs, to prevent conflicts of interest if confirmed.
In her letter, Warren asks whether the Office of Foreign Assets Control (OFAC) should have jurisdiction over stablecoins and the authority to blacklist high-risk crypto firms operating in the U.S.
She frames this as a matter of national security, citing concerns about the misuse of cryptocurrencies for money laundering, sanctions evasion, and financing threats.
The letter specifically mentions instances such as Russia’s invasion of Ukraine, North Korea’s nuclear program, China’s alleged arms sales to sanctioned nations.
Related: US, Japan, and South Korea Unite Against North Korean Hackers
The crypto industry has responded to Warren’s letter. Alexander Grieve, VP of Government Affairs for Paradigm, acknowledged the legitimacy of Warren’s concerns but suggested they are part of a broader agenda to expand anti-money laundering (AML) regulations to include neutral crypto technology providers.
Senator Warren has long been critical of cryptocurrencies. Her ongoing efforts to advance AML legislation could impose stricter regulations on the crypto industry, potentially reshaping the landscape of digital assets in the U.S.
Related: How Blockchain is Changing the Face of Charity
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