US Senator Cynthia Lummis Defends Crypto Against Money Laundering Allegations

Key Points:

• US Senator Cynthia Lummis rebuts Elizabeth Warren, stating fiat currency’s $900 million laundering far exceeds crypto’s $900,000.
• Warren criticizes the SEC’s approval of Bitcoin ETFs, urging immediate implementation of AML rules for crypto assets entering the financial system.

In a heated exchange between US Senator Cynthia Lummis and Elizabeth Warren, the debate over the financial implications of crypto versus traditional fiat currency has taken center stage.

US Senator Cynthia Lummis Challenges Warren on Fiat vs. Crypto Laundering

Responding to Warren‘s criticism of the US Securities and Exchange Commission’s (SEC) approval of spot Bitcoin ETF proposals, Lummis argued that fiat currency has laundered over $900 million, significantly surpassing the $900,000 linked to crypto.

“Crypto is clearly not the problem. Criminals and bad actors are,” asserted Lummis, emphasizing the distinction between the technology itself and illicit activities. Warren, on the other hand, expressed her concerns about the SEC’s decision, insisting on the immediate implementation of Anti-Money Laundering (AML) rules for cryptocurrencies.

On January 12, 2024, a day after the SEC‘s landmark approval of the spot Bitcoin Exchange Traded Fund, Warren criticized the move, stating, “Even in the case of these crypto assets entering our financial system, it is all the more critical that they comply with known anti-money laundering provisions.” She accused the Gary Gensler-headed Commission of misjudging legal matters concerning the decision.

Warren’s opposition to crypto extended to her criticism of the Bitcoin ETF ruling, where she contended that the Commission erred in law and approval notice delivery.

Meanwhile, US Senator Cynthia Lummis and Bill Hagerty, both members of the Senate Banking Committee, had previously introduced the Preventing Illicit Finance Through Partnership Act of 2024. The ongoing debate underscores the need for a nuanced approach to regulating cryptocurrencies within the broader financial landscape.