Elizabeth Warren endorses expanded sanction choices for stablecoins in the United States.

United States Senator Elizabeth Warren has written a letter to Treasury Secretary Janet Yellen addressing Deputy Treasury Secretary Wally Adeyemo’s testimony before the Senate Banking Committee. In the letter, Warren expressed her support for the implementation of more comprehensive measures against money laundering and the financing of terrorism (AML/CFT) for stablecoins. Adeyemo attended the Senate hearing to discuss Treasury proposals for expanding its sanctions powers to blockchain validator node operators, among other measures. The Treasury outlined its enhanced enforcement goals in response to gaps in current regulations in a document referred to as a “letter to Congress” dated November 2023. However, Warren’s comments were not in reference to the stablecoin bill introduced in the Senate by Senators Kirsten Gillibrand and Cynthia Lummis on April 17, as it made minimal mention of AML/CFT. Instead, Warren seems to be focusing on a bill expected to come from the House of Representatives, specifically from Finance Committee chair Patrick McHenry and ranking member Maxine Waters. Warren wrote a similar letter to McHenry and Waters on April 8, expressing her concerns. In conclusion, Warren urged Secretary Yellen to consider her points regarding AML/CFT measures for stablecoins.