2024

Bitcoin

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Discord regarding Bitcoin and cryptocurrencies persists between U.S. lawmakers after a year of growth for global adoption and the coming of spot BTC ETFs.
Senator Cynthia Lummis disagreed with her fellow Senator Elizabeth Warren following comments from the latter over illicit wealth funneled through cryptocurrencies by criminals worldwide.&nbsp;
Sen. Warren <a href="https://x.com/SenWarren/status/1749201795782467891?s=20" target="_blank" rel="noopener noreferrer nofollow">pointed</a> to a single case of $900,000 laundered by the notorious Sinaloa Cartel using digital assets supported by blockchain technology. Warren cited the matter while arguing for stricter measures on crypto and virtual currencies due to the widespread illegal activities carried out via these emerging assets.
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 A new&nbsp;<a href="https://twitter.com/USGAO?ref_src=twsrc%5Etfw" target="_blank" rel="noopener noreferrer nofollow">@USGAO</a> report&nbsp;confirms that rogue nations are using crypto to dodge&nbsp;sanctions and undermine our national security. It’s time for crypto to follow the same anti-money laundering&nbsp;rules as everyone else.&nbsp;I’ve got a bill to make it happen. <a href="https://t.co/TUX2sJ8HR0" target="_blank" rel="noopener noreferrer nofollow">https://t.co/TUX2sJ8HR0</a>— Elizabeth Warren (@SenWarren) <a href="https://twitter.com/SenWarren/status/1749201795782467891?ref_src=twsrc%5Etfw" target="_blank" rel="noopener noreferrer nofollow">January 21, 2024</a>
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You might also like: <a href="https://crypto.news/coinbases-grewal-scrutinizes-us-gaos-report-on-cryptos-role-in-sanctions-evasion/" rel="noopener noreferrer nofollow"> Coinbase’s Grewal scrutinizes US GAO’s report on crypto’s role in sanctions evasion </a>
However, as Lummis highlighted, Warren <a href="https://x.com/SenLummis/status/1749835395385176366?s=20" target="_blank" rel="noopener noreferrer nofollow">failed</a> to mention nearly $1 billion in money laundering operations masterminded by the same cartel in previous years. This $900 million of criminal cash was filtered through monetary systems using fiat currencies.
The data contradicts Warren’s claims that crypto is the primary channel for money laundering and criminal financing.&nbsp;
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 Crypto is clearly not the problem. Criminals and bad actors are. It would be a historic mistake to crush an entire emerging industry based on incorrect data. <cite>Senator Cynthia Lummis</cite>
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Chainalysis noted a 39% drop in illicit crypto transactions received throughout 2023. Despite this <a href="https://crypto.news/illicit-crypto-addresses-received-over-24b-in-2023-chainalysis-says/" target="_blank" rel="noopener noreferrer nofollow">decrease</a> amounting to $24.1 billion, reports show that criminal activity tied to cryptocurrencies also declined below 0.35%, indicating a shift in asset preference for bad actors.&nbsp;
Global crypto <a href="https://crypto.news/crypto-usage-grew-34-in-2023-bitcoin-ethereum-major-catalysts/" target="_blank" rel="noopener noreferrer nofollow">usage</a> increased by 34% in the same year, with over $580 million individuals around the world holding some form of cryptocurrency. In the U.S., this has meant more scrutiny of digital assets as watchdogs like the Securities and Exchange Commission sued a basket of crypto businesses and operators for alleged violations. The regulator has cases against <a href="https://crypto.news/binance-vs-sec-judge-shows-skepticism-on-busd-as-an-investment-contract/" target="_blank" rel="noopener noreferrer nofollow">Binance</a> and <a href="https://crypto.news/coinbase-vs-sec-judge-scrutinizes-90-year-old-securities-act/" target="_blank" rel="noopener noreferrer nofollow">Coinbase</a>, the largest crypto exchanges.&nbsp;
Coinbase, in particular, has promised to pursue litigation against the SEC for the regulator’s refusal to provide comprehensive and clear guidelines for compliant digital asset service providers.
Read more: <a href="https://crypto.news/analyst-coinbase-poised-to-win-dismissal-over-sec-lawsuit/" rel="noopener noreferrer nofollow"> Analyst: Coinbase poised to win dismissal over SEC lawsuit </a>

Sen. Lummis: Crypto not the problem, bad actors are

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