Senator Elizabeth Warren’s bill requiring foreign crypto companies to comply with U.S. government sanctions has drawn criticism from the crypto community.
Recently, US Senator Elizabeth Warren introduced a bill to prevent foreign crypto firms from doing business with companies under sanctions. Coinbase Head of Policy Kara Calvert stated on Twitter that the draft law contradicts the very idea of cryptocurrencies.
“Warren’s bill is untrue and undemocratic,” Calvert said.
Thomas Hook, director of compliance at Bitstamp exchange, noted that blockchain analytics tools are widely used around the world, and provide more control to prevent sanctions evasion than traditional finance. Hook called for transferring the transaction tracking initiative to cryptocurrency companies.
“If the US Congress is looking for ways to tighten enforcement of sanctions, they must work within existing processes to enforce them, and we will put in place controls to enforce those sanctions,” he said.
Coin Center CEO Jerry Brito declared on Twitter that the bill has very little chance of being passed. According to Brito, “It doesn’t have bipartisan support, it doesn’t look like it’s going to be tied to anything that has to pass, and it goes against the grain of what pundits and the administration are recommending.”
Blockchain Association Head of Policy Jake Chervinsky supported Brito’s thoughts and was more categorical about the law. He stated that “Now is not the time to call Congress and pull the red lever.” The bill in its current form is so blatantly unsupported that it likely won’t move forward.
In early March, former US presidential candidate Hillary Clinton expressed her disapproval of the policy of trading floors and called on Western companies to stop Russia’s use of crypto assets to circumvent sanctions. Last week, the European Union equated cryptocurrencies to securities in order to tighten sanctions.
Source: Bits
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