See More

Elizabeth Warren Crypto Bill Steps Toward a Digital Dictatorship

2 mins
Updated by Kyle Baird
Join our Trading Community on Telegram

In Brief

  • Warren wants to eradicate all privacy from digital transactions.
  • Wallets, nodes, and validators to be treated as "money service businesses."
  • America could be closer to turning into a surveillance state.
  • promo

The details of how Senator Elizabeth Warren wants to regulate crypto have emerged, and they’re frightening on another level.

The staunch anti-crypto Democrat has released her proposed crypto legislation. However, it is full of gaping holes showing that she clearly does not understand the underlying technology.

The bill is intended to require the Financial Crimes Enforcement Network to issue guidance on digital assets. In other words, she wants to treat the industry and asset class as criminal entities:

“Rogue nations, oligarchs and drug lords are using crypto to launder billions, evade sanctions and finance terrorism.”

That was the latest tirade from the politician who clearly loathes the crypto industry and all involved with it.

Elizabeth Warren: Crypto is a Threat to National Security

The proposed “Digital Asset Anti Money Laundering Act of 2022” has a sweeping range of requirements that obliterate any financial privacy.

Showing a monumental lack of comprehension of the technology, Warren wants to classify wallets, nodes, and validators as “money service businesses.”

Validators and nodes are pieces of software that authenticate blockchain transactions, they are not businesses.

Furthermore, those entities would be required to register as Financial Institutions like in banking and traditional finance. As such, they would need to identify and record the personal information of every person who uses their software.

They would also be obliged to file reports about their users without a warrant, government request, or probable cause. These “Financial Institutions” would also be banned from making any transactions using privacy tools or networks, according to Elizabeth Warren.

Crypto Community Reacts

Washington DC-based research and advocacy organization CoinCenter said nothing about the bill would prevent the next FTX, and it actually puts users at more risk. Furthermore, it added that it is intended to forbid Americans from having any technological guarantees of personal privacy.

“The bill has been deliberately crafted to make permissionless blockchains unavailable to Americans by forcing all validators and developers of these networks to gate and surveil their infrastructure.”

Industry expert Ryan Sean Adams called it the most “significant attack on digital freedom” he’s ever seen. Moreover, he pointed out that the bill aims to ban financial privacy and turn America into a full-on surveillance state, adding:

“Instead of doubling down on the values of our constitution we’re fast-following China into a half-assed digital authoritarianism.”

Additionally, Reflexivity Research co-founder, Will Clemente, commented:

“Elizabeth Warren is so uneducated on the subject that she doesn’t realize the FTX blowup was the same as fractional reserve bank blowups that have been taking place for centuries.”

The FTX blowup is a prime example of the reason why Bitcoin was created; to eliminate trust, he added.

Top crypto projects in the US | July 2024
Harambe AI Harambe AI Explore
Uphold Uphold Explore
Coinbase Coinbase Explore
Chain GPT Chain GPT Explore
Top crypto projects in the US | July 2024
Harambe AI Harambe AI Explore
Uphold Uphold Explore
Coinbase Coinbase Explore
Chain GPT Chain GPT Explore
Top crypto projects in the US | July 2024

Trusted

Disclaimer

In adherence to the Trust Project guidelines, BeInCrypto is committed to unbiased, transparent reporting. This news article aims to provide accurate, timely information. However, readers are advised to verify facts independently and consult with a professional before making any decisions based on this content. Please note that our Terms and ConditionsPrivacy Policy, and Disclaimers have been updated.

profile.jpg
Martin Young
Martin Young is a seasoned cryptocurrency journalist and editor with over 7 years of experience covering the latest news and trends in the digital asset space. He is passionate about making complex blockchain, fintech, and macroeconomics concepts understandable for mainstream audiences.   Martin has been featured in top finance, technology, and crypto publications including BeInCrypto, CoinTelegraph, NewsBTC, FX Empire, and Asia Times. His articles provide an in-depth analysis of...
READ FULL BIO
Sponsored
Sponsored