US Senator Warren Faces Crypto Twitter Backlash for New Stance

In Brief

• Senator Warren is looking to introduce legislation aimed at closing the so-called 'loopholes' existing within the cryptocurrency community.
• Several crypto community members said all transactions within the space are traceable.
• U.S. legislators hold diverse views and standpoints regarding the cryptocurrency industry, resulting in divided opinions.

Several crypto community members have criticized Senator’s Warren latest stand about how crypto is being by illegal actors for their activities.
In a June 3 tweet, the Democrat Senator rehashed her concerns about the harmful impacts of cryptocurrency. She said, “rogue nations, oligarchs, and drug lords use crypto to launder billions in stolen funds, evade sanctions, and finance terrorism.”

Senator Warren Touts New Crypto Bill
Due to this, Senator Warren wants to introduce a bill that will end the cryptocurrencies use for illegality and bring order to the industry. She added that the bill would “close loopholes and apply common-sense rules to the industry.”

However, many in the community criticized her statement, pointing out that transactions in the space are transparent and traceable. The COO of BitGO, Chen Fang, said crypto transactions are traceable and “the worst conduit for illicit activity.” Fang added:“Pretty sure USD is the currency of choice for those matters.”

Several others corroborated this view and suggested that the authorities could trace the transactions. Meanwhile, others joked that Pablo Escobar would agree with her that crypto was responsible for funding the drug trade.

Warren’s Anti-crypto Stand
Meanwhile, Warren’s latest statement is coming on the heels of her argument that crypto was being used for Fentanyl trades. Citing Elliptic research data, the lawmaker urged more crypto regulations to combat the drug menace.

Elliptic research stated that Chinese companies selling chemicals for making Fentanyl received around $27 million in Bitcoin and USDT. This amount could produce $54 billion worth of Fentanyl at street value.

Senator Warren is a vocal critic of cryptocurrencies and mentioned that she would be forming an Anti-crypto army in her campaign for re-election. She has also questioned the value of cryptocurrencies and supported a government-backed CBDC.

A Divided Congress
Warren’s comment is coming a few days after key Republican leaders published a draft of legislation seeking to regulate crypto. The proposed bill has attracted the support of several crypto stakeholders who believe it would provide much-needed clarity for the industry.

On the other hand, a leaked memo showed the anti-crypto stand adopted by Democratic Party politicians. The notice raised concerns within the space, with many saying the lawmakers barely understand the sector they seek to regulate.

Disclaimer
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