US senator claims Biden administration uses crypto as ‘scapegoat’ to mask failures in halting illicit finance

In a pointed critique during a Senate hearing on April 9, Senator Tim Scott accused the current US administration of making digital assets the “scapegoat” in efforts to combat terrorism financing, ignoring more significant, more traditional sources of such funding, particularly those benefiting Iran.

Addressing Deputy Treasury Secretary Adewale Adeyemo, Scott voiced concerns over the Treasury’s exclusive requests for expanded authority over cryptocurrencies to the Senate Committee on Banking, Housing, and Urban Affairs.

How To Get Free Crypto  

He argued that this narrow focus sidelines significant sources of terrorism funding, including Iran’s $35 billion in oil exports and an additional $16 billion in US hostage relief and electricity waivers, which, according to Scott, facilitate the Iranian government’s misuse of funds.

According to Scott, the focus on crypto misses the “elephant in the room” as the scope of the conversation regarding illicit financing is “far larger than digital assets.”

Strict oversight needed

In response, Deputy Treasury Secretary Adeyemo defended the focus on digital assets, stating the Treasury’s current lack of authority makes it challenging to restrict crypto transactions effectively compared to traditional financial transfers.

Adeyemo emphasized the distinct challenges posed by crypto, including Russia’s stablecoin use to avoid sanctions and North Korea’s reliance on mixers to obscure financial transactions.

Coinbase Banner  

Adeyemo outlined the Treasury’s request for additional powers over crypto, a proposal made in November that aims to introduce secondary sanctions against foreign crypto providers, tighten existing regulations, and address risks posed by international crypto platforms.

Adeyemo also addressed Scott’s concerns about the abuse of humanitarian funding and said the US intends to remain committed to humanitarian relief despite Iran’s known abuse of funding.

In his prepared remarks, Adeyemo explained how the Treasury wants additional authority over crypto. The Treasury’s formal request, dating back to November, focuses on three points — to introduce a secondary sanctions tool aimed at foreign crypto providers, tighten existing authority over crypto, and target jurisdictional risk from crypto platforms based internationally.

Other remarks

The call for enhanced oversight of digital assets also saw support from other senators, who believe the sector needs tighter regulations.

FreeBitcoin Banner  

Committee Chairman Sherrod Brown stressed the importance of crypto platforms adhering to the same regulatory standards as traditional financial institutions, particularly in combating terrorist financing.

Senator Bob Menendez raised concerns about the ease of converting oil proceeds to crypto, to which Adeyemo reiterated the necessity for more comprehensive authority over the sector.

Senator Bob Menendez raised concerns that Iran could convert the proceeds from oil sales to crypto. Adeyemo reiterated the need for more comprehensive authority over the sector in response.

Senator Elizabeth Warren also contributed, highlighting Iran’s role as a blockchain validator and its potential to earn millions in transaction fees, including from US transactions. Warren called for the extension of financial institution regulations to blockchain validators to prevent abuse.

Mentioned in this article

Go to Source
Author: Mike Dalton

Recommended Crypto Services, Products and Strategies:

The first thing any crypto investor needs is is a reliable and secure Crypto Wallet.  Whether you’re looking for an online wallet, hardware wallet, desktop or mobile wallet, Crypto Renegade provides you with all the Best Crypto Wallets in each category.

Best Crypto Wallets Banner

When you’re ready to buy more crypto, or exchange your coins for others, Crypto Renegade’s list of the Best Crypto Exchanges has you covered.  The Crypto Exchanges recommended here offer everything from simplicity and convenience to advanced trading platforms and profit sharing. 

Best Crypto Exchanges Banner

If you want to learn more about the methods and tools that can be used to find Great Crypto Projects, then be sure to check out Crypto Renegade’s strategy for How To Find The Best Cryptocurrency.

Crypto Strategy Banner

For those people that don’t have any money to invest right now, or just want to understand the technology a bit more, you’ll definitely want to check out Crypto Renegade’s Free Crypto Strategy and start collecting Free Coins today!

Free Crypto Banner

What do you think about cryptocurrency? Do you have any questions about it? Be sure to leave a comment below.

You May Also Like

More From Author

This site uses Akismet to reduce spam. Learn how your comment data is processed.