US Lawmakers Express Urgent Concern Over Use of Digital Currencies by Rogue Nations
A bipartisan coalition of US lawmakers has raised urgent concerns over the use of digital currencies like Tether (USDT) by countries such as Russia, Iran, and North Korea to evade international sanctions. Senators Elizabeth Warren and Roger Marshall penned a letter to top government officials, including Secretary of Defense Lloyd Austin and Secretary of the Treasury Janet Yellen, expressing the need for stronger regulatory measures to address this growing issue.
Recent reports have revealed that Tether has played a crucial role in Russia’s military operations, allowing the country to bypass sanctions and continue its activities in Ukraine. Despite sanctions against Russian trading exchange Garantex, the platform reportedly still processes significant amounts of crypto transactions, prompting US officials to review over $20 billion worth of crypto transactions potentially linked to Russian exchanges post-sanctions.
The lawmakers also highlighted concerns over the use of digital currencies by North Korea to fund its nuclear ambitions and Iran to finance terrorist organizations designated by the US. In response, they are calling for a detailed briefing on actions taken and potential strategies to mitigate the risks associated with the use of crypto in sanctions evasion.
This latest development follows the Treasury’s previous request for new authority to regulate crypto exchanges and fintech services used in terrorism and to address loopholes in the use of crypto in illicit activities. Senator Warren, a vocal advocate for crypto regulation, has emphasized the need for comprehensive legislation to combat these challenges and safeguard national security.
As the debate over the regulation of digital assets continues to evolve, US lawmakers are under increasing pressure to address the sophisticated methods employed by rogue nations to evade sanctions using cryptocurrencies like Tether. The outcome of these efforts could have far-reaching implications for global conflicts and the future of financial security.
