Senator Elizabeth Warren Slams Push For Stablecoin Bill, Cites National Security Risks
Senator Elizabeth Warren is criticizing the push for a stablecoin bill without anti-money laundering laws in place, citing national security concerns, a Monday letter to House Financial Service Committee Chairman Patrick McHenry (R-NC) and Ranking Member Maxine Waters (D-CA) reveals.
Throughout the recently published letter, Warren argues that creating new regulatory frameworks for stablecoins could “amplify and entrench” risks they pose to the American banking sector.
As Congress returns this week and crypto returns to the convo, Sen. Warren is out with a letter to Reps. McHenry and Waters throwing cold water on the idea of a stablecoin bill.
“Efforts to create new regulatory frameworks around the $157B stablecoin market, including those… pic.twitter.com/9LJsb3ye0v
— Alexander Grieve (@AlexanderGrieve) April 9, 2024
In part, Warren claims that stablecoins pose a threat to consumers and the banking system at large, including payment system destabilization, national security risks and more.
“Policymakers should be weary of efforts to integrate stablecoins into the formal banking system – or extend any of the concomitant safety net protections to stablecoin issuers – without strong rules that ensure safety and soundness,” the senator wrote.
News of Warren’s letter follows McHenry’s 2023 yet-to-be-passed “Clarity for Payment Stablecoins Act,” which would see increased regulation on the cryptocurrencies similar to traditional financial institutions.
Just yesterday, Warren furthered her efforts to pass DAAMLA during a Senate hearing yesterday entitled “An Update from the Treasury Department: Countering Illicit Finance, Terrorism and Sanctions Evasion,” where she claimed that the U.S. “doesn’t have the right anti-money
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