Cryptocurrency Conspiracy? Elizabeth Warren’s Mysterious Message to Trump’s Treasury Pick

19

US Senator Elizabeth Warren has issued an open letter to Scott Bessent, Donald Trump’s choice for US Treasury Secretary, urging him to consider stricter regulations on digital assets should he assume the position. In the letter dated January 12, Warren queries whether the Treasury should have expanded authority in terms of sanctioning the cryptocurrency sector.

Warren emphasized the need for risk-based provisions within Anti-Money Laundering (AML) and Counter-Terrorism Financing (CFT) frameworks, citing potential misuse of cryptocurrencies by criminals for activities such as money laundering, sanctions evasion, and funding national security threats including North Korea’s nuclear efforts and Russian aggression in Ukraine. She also points out concerns related to China’s sale of weaponry and ransomware attacks.


The Senator has also raised questions about the potential inclusion of stablecoins under the Office of Foreign Assets Control’s jurisdiction and the extension of the Treasury’s Bank Secrecy Act powers to include foreign companies with links to US markets. Warren expects Bessent to address these questions during his confirmation hearing on January 16.

Commentators suggest Warren’s actions could be a strategy to justify a broader regulatory crackdown on the crypto industry. Alexander Grieve, a vice president at crypto firm Paradigm, noted that the questions posed by Warren appear reasonable but may conceal an intent to advocate for substantial regulatory expansion over cryptocurrency technology providers.

Warren has been a vocal proponent of rigorous crypto regulations, having introduced the Digital Asset Anti-Money Laundering Act previously. Critics, including US-based crypto advocacy groups and former security officials, argue that such measures could drive the industry overseas, impacting law enforcement and national security.

The letter arrives just days before Donald Trump’s anticipated inauguration on January 20, amid expectations he may implement crypto-friendly policies as promised during his campaign. A growing number of pro-crypto candidates have gained seats in Congress, hinting that the US government might become increasingly supportive of the digital currency sphere.