Regulation
Senators pressure President Joe Biden on crypto regulation
Amid growing concerns about the use of cryptocurrency to circumvent sanctions, Senators Elizabeth Warren (D-Mass.) and Angus King (I-Maine) called on the Biden administration to tighten regulations on cryptography.
Their concerns were highlighted in a recent letter to high-ranking officials, highlighting Iran’s gains from cryptocurrency mining.
From US Senators to Biden: Act Now on Crypto Regulation
The senators Underlines the urgency of the issue, emphasizing that Iran has managed to amass millions of dollars through cryptocurrency. This wealth allegedly supports domestic and international financial activities. It also helps finance organizations like Hamas.
“Iran uses cryptocurrency to finance terrorist organizations like Hamas and Palestinian Islamic Jihad. One estimate indicates that Iranian Bitcoin mining could have generated up to $1 billion in revenue in 2021… Rogue countries like Iran are taking advantage of AML loopholes in the crypto ecosystem and using these profits to harm real people,” the senators wrote.
These revelations highlight the critical role of crypto in modern finance and its potential misuse amid less stringent regulations.
Cryptocurrency mining, which involves validating transactions and creating new digital coins, has proven to be a lucrative business for Iran. From 2015 to 2021, Bitcoin mining funneled over $186 million to Iranian crypto platforms. Tehran among top eight Bitcoin producers worldwide from 2021.
Elizabeth Warren and Angus King requested detailed information on how Iran’s crypto operations facilitate the financing of terrorist organizations and military or weapons development efforts.
Learn more: Crypto regulation: what are the advantages and disadvantages?
This push for stricter crypto regulation comes at a time when the Biden administration faces criticism from various sectors. For example, Matthew Sigel, head of digital assets research at VanEckaccused the administration of quickly imposing limits on decentralized finance (Challenge) and the self-preservation of digital assets.
“The Biden administration is rushing to Challenge and self-custody is functionally illegal in the United States before voters can express their political intentions at the ballot box,” Sigel said.
As the political environment heats up ahead of the presidential elections, the debate over cryptocurrency regulation is crucial. Reflect broader concerns on national issues securityeconomic stability and the integrity of international financial systems.
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