Treasury Official Seeks Wider Powers to Crack Down on Illicit Financing in Crypto: Republican Senators Criticize Biden Administration’s Approach

Top Treasury Official Seeks More Power to Crack Down on Illicit Financing in Crypto, Republican Senators Push Back

In a recent Senate Banking Committee hearing, a top Treasury official called for broader authority to combat illicit financing in the cryptocurrency industry. However, Republican lawmakers pushed back, accusing the Biden administration of using crypto as a “scapegoat” for funding America’s enemies.

Since the recent attacks by Hamas on Israel, concerns have grown among lawmakers that cryptocurrencies are being used to finance militant groups and rogue nations. Despite this, supporters of the crypto industry argue that traditional avenues, such as cash, remain the primary source of funding for these groups.

During the hearing, Senator Tim Scott of South Carolina criticized the focus on digital assets, pointing out that the Biden administration’s actions, such as allowing Iran to sell oil to China and access billions of dollars through sanctions waivers, pose a far greater threat.

Treasury deputy secretary Wally Adeyemo defended the need for more tools to target crypto firms, citing the shift by groups like Hamas and Hezbollah towards alternative financing methods. He emphasized the importance of staying ahead of the evolving landscape of illicit financing in the crypto space.

Despite the pushback from Republican lawmakers, there is bipartisan support for legislation to address money laundering and illicit financing through cryptocurrencies. Members of the Senate Banking Committee, including Senator Elizabeth Warren, are actively working on bills to combat these issues.

As the debate continues, the crypto industry remains under scrutiny, with calls for increased regulation and oversight to prevent illicit financing activities. Stay tuned for updates on this developing story.