Home
News
Elizabeth Warren, a senior United States senator sent a letter to Treasury Secretary Janet Yellen in support of stablecoin legislation.
Senator Elizabeth Warren is hoping for new sanctions authority included in stablecoin legislation, and to express her support, she sent a letter to Treasury Secretary Janet Yellen. She supports a more comprehensive Anti-Money Laundering and Combating the Financing of Terrorism (AML/CFT) measures for stablecoin.
Elizabeth Warren Supports Adoption Of More Comprehensive AML/CFT
On April 16, Elizabeth Warren expressed her views on stablecoin legislation by sending a letter to Treasury Secretary Janet Yellen. The letter comments on Deputy Treasury Secretary Wally Adeyemo’s testimony before the Senate Banking Committee, focusing on AML/CFT.
In her correspondence, Warren advocated for the implementation of strict AML/CFT regulations mainly targeting stablecoins. Adeyemo’s Senate appearance was to address potential Treasury initiatives, including extending sanctioning authority to those who operate blockchain validation nodes, among other topics.
These initiatives were part of a wider strategy to manage regulatory shortcomings, as outlined in a document Warren refers to as a “letter to Congress” from November 2023.
“Those authorities must be adopted into any legislation Congress advances to create a new regulatory framework around the $157 Billion stablecoin market,” she said in the letter.
Elizabeth Warren’s comments did not pertain to the stablecoin legislation introduced by Senators Kirsten Gillibrand and Cynthia Lummis on April 17, which barely addresses AML/CFT. Rather, she was hinting at the anticipated legislation from the House Financial Services Committee, led by Chair Patrick McHenry and Ranking Member Maxine Waters. Warren had previously shared similar concerns with them in a letter dated April 8, showcasing the issues raised in her letter to Yellen.
Elizabeth Warren summarized her letter by stating, “Stablecoin legislation must include the full suite of AML tools that Treasury requested in its November 2023 letter to Congress as necessary to combat that threat [of terrorism financing] effectively”.
Alexander Grieve responded to Warren’s letter.
Worth calling out that this is the 3rd or 4th letter with either just Warren, or Warren + one other Member on it.
— Alexander Grieve (@AlexanderGrieve) April 17, 2024
While she’s certainly out on an island here (with Wally and Brown on it too 🏝️), don’t underestimate ability to pull the Overton Window in her direction https://t.co/T8oLzUw3pa
“Warren is certainly out on an island, but don’t underestimate her ability to pull the Overton window”, Grieve responded.
About Stablecoins
A sablecoin is a cryptocurrency whose price and value are pegged to another asset class, including fiat currency or gold, to stabilize the price. Such an asset helps reduce price volatility by backing the price against a conventional asset.
BitUSD was the first stablecoin launched in 2014 and was issued on the BitShare blockchain. Other examples include Tether (USDT), and USD Coin (USDC).
Andrew is a blockchain developer who developed his interest in cryptocurrencies while pursuing his post-graduation major in blockchain development. He is a keen observer of details and shares his passion for writing, along with coding. His backend knowledge about blockchain helps him give a unique perspective to his writing skills, and a reliable craft at explaining the concepts such as blockchain programming, languages and token minting. He also frequently shares technical details and performance indicators of ICOs and IDOs.
