Elizabeth Warren, one of the most vocal senators on cryptocurrencies in recent months wants to implement a harsh ban on crypto wallets. In the United States, cryptocurrencies are facing a very confusing situation as they are failing to launch a comprehensive policy to manage cryptocurrencies.
Democratic party member and senator from Massachusetts has been very active in raising her voice against the misuse of crypto. Previously, in December 2022, Elizabeth Warren and Roger Marshall introduced the Digital Asset Anti-Money Laundering Act which intends to regulate the cryptocurrency industry. It restricts the use of digital asset mixers and wallets on your phone. For those entities that may not be able to implement the provided guidelines will have to shut their services.
Elizabeth Warren took harsh steps against the cryptocurrency wallet in recent months. She seems very pessimistic when it comes to cryptocurrencies in a statement, she called crypto the most suitable payment system for international drug traffickers and terrorists. It is good to regulate cryptocurrencies to protect Americans from fraud and data thefts but completely abolishing the use of cryptocurrencies will force users toward the traditional banking system. The promises from the Massachusetts Senator that the outright ban on wallets will curb money laundering seems quite impressive but there are only $10 billion funds of cryptocurrencies involved in money laundering each year against $800 billion in traditional currencies.
There are many other concerns like privacy from data sharing with the government. The bill intends to record the data of users and send it to authorities without informing the clients. Additionally, the vulnerability to falling into scams will increase because of the recorded data from blockchain users and crypto owners. Blockchain technology is not a loophole in the system and various incidents have proved its credibility. The Federal Bureau of Investigation’s success in recovering stolen cryptocurrencies has proved that they are recoverable if policies are implemented carefully. It will be interesting to see how the United States will tackle cryptocurrency management in the upcoming days.