US Senator: ‘Crypto and traditional finance must follow the same rules’

United States Senator Elizabeth Warren is calling for uniform regulations for the crypto sector and traditional financial markets.

During an interview with Bloomberg Television on February 27, Warren emphasized her desire to work with the crypto industry, with the goal of creating a level playing field.

She argues that within the financial system, everyone should follow the same rules, regardless of whether it concerns traditional finance or crypto-related activities.

Warren emphasizes that she is not looking for more complex or strict rules; its purpose is simply to ensure regulatory consistency.

However, Warren also expressed concerns about resistance within the crypto industry to such regulation. She claims that some industry players argue that they can only prosper if there is room for criminal activity, such as ransomware attacks, drug trafficking, human trafficking and terrorism.

This position faces resistance from Warren, who believes that crypto projects should not operate outside existing legal frameworks, especially because according to her, issuing tokens is essentially the same as issuing shares.

Warren’s proposal

Senator Elizabeth Warren has introduced the Digital Asset Anti-Money Laundering Act, a bill that aims to regulate elements of decentralized technologies — including blockchain nodes, validators, non-custodial wallets, and software providers — in the same way as traditional financial institutions such as banks and stockbrokers.

This proposal has caused an uproar within the crypto industry, with executives, organizations, and associations speaking out strongly against the proposal. They argue that the bill does not reflect the nature of the technology and fear it will stifle innovation and shift investment abroad.

Despite concerns within the crypto industry, the U.S. Treasury Department has acknowledged that previous claims about the use of cryptocurrencies for terrorist financing may have been exaggerated.

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