Senate crypto hearing throws up big claims, possible regulation –

(NewsNation) — If more regulation had prevented the spectacular collapse of the cryptocurrency exchange FTX was fiercely debated at a Senate banking committee hearing on Wednesday. However, new legislation is potentially on the way.

Senator Elizabeth Warren announced at the hearing bipartisan legislation aimed at cracking down on cryptocurrencies being used for money laundering. The legislation, co-sponsored by Republican Sen. Roger Marshall of Kansas, would require cryptocurrency exchanges to verify customer identities like banks and other financial institutions do.

“Cryptocurrency has become the tool of choice for terrorists, ransomware gangs, drug dealers and rogue states that want to launder money,” said Warren, the Massachusetts Democrat, adding that “cryptocurrency doesn’t get a pass to help the worst in the world”. criminals, no matter how many TV ads they run or how many political contributions they make.”

Republican Sen. Cynthia Lummis of Wyoming said she and Democratic Sen. Kirsten Gillibrand of New York would reintroduce their bipartisan legislation, the Responsible Financial Innovation Act, next year. That law would require disclosures and consumer protection obligations by cryptocurrency issuers.

Lummis, like several other Republicans on the banking committee, said former FTX CEO Sam Bankman-Fried’s alleged financial wrongdoing should not be used to target cryptocurrency more generally.

“Let’s separate the digital assets from the corrupt organizations,” he said. “FTX is a good old fashioned fraud.”

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