Yigit Taha OZTURK 
US Senator Elizabeth Warren has penned an open letter to President-elect Donald Trump’s Treasury Secretary nominee, Scott Bessent, urging stricter regulations for digital assets. Warren argued for the expansion of Anti-Money Laundering (AML) and Counter-Terrorism Financing (CFT) programs to cover the crypto sector more comprehensively.
Warren’s Open Letter and Criticism of Crypto
In her January 12 letter, Warren highlighted the use of digital assets by bad actors for money laundering, sanctions evasion, and financing national security threats. Citing examples such as North Korea’s nuclear program, Russia’s attacks on Ukraine, and ransomware incidents, Warren stated, “These threats pose serious risks to US national security.”
She posed several questions for Bessent to address during his confirmation hearing:
- Should the Office of Foreign Assets Control (OFAC) have authority over stablecoins?
- Should the scope of the Bank Secrecy Act (BSA) extend to foreign crypto companies linked to US markets?
- Should secondary sanctions be introduced to cut fintech and crypto operators from US relations?
Warren has previously introduced the Digital Asset Anti-Money Laundering Act in 2022 and 2023. However, the proposal faced criticism from US-based crypto advocates and 80 former security officials, who argued it could push the industry overseas and heighten national security risks.
Is Trump’s Crypto-Friendly Agenda on the Horizon?
Donald Trump, set to be inaugurated on January 20, is expected to take significant steps favoring the crypto sector. According to The Washington Post, Trump may sign executive orders addressing crypto de-banking and overturning a rule that requires banks to report crypto assets as liabilities.
During the Bitcoin 2024 Conference, Trump vowed to make the US a “crypto capital,” promising a Bitcoin strategic reserve and reduced regulatory pressure on the industry.
Excitement Grows in the Crypto Industry
Trump’s Treasury appointments and executive orders are highly anticipated by the crypto community. Additionally, venture capitalist Marc Andreessen has reportedly been advising Trump on key administration roles, focusing on technology, defense, and intelligence.
Trump’s policies could eliminate Biden-era restrictions like “Operation ChokePoint 2.0,” which limited the industry’s access to financial services. Meanwhile, Warren’s calls for stricter oversight signal potential challenges ahead.
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