A Senate Banking Committee hearing focused on illicit finance and terrorism gave a window into how lawmakers plan to shape potential legislation focused on digital assets.
Brown, who would be instrumental in advancing crypto bills, has said he is in talks about a bill that would target the use of digital assets for money laundering, according to past reporting from Politico. Both Democrats and Republicans in the House and Senate have been honing in on illicit finance provisions and bills over the past year, though differ in approaches.
Terrorist groups are trying to take advantage of cryptocurrencies as groups such as al-Qaeda and Hamas use virtual currencies to solicit donations, Adeyemo said in a prepared testimony. Other countries, such North Korea and Russia have tapped into crypto, with Russia specifically turning to stablecoins like Tether to "finance its war machine," Adeyemo said.
Menendez's comments come after crypto exchange Binance and its former CEO Changpeng Zhao admitted to breaking anti-money laundering laws. The New Jersey Democrat asked Adeyemo what the Treasury plans to do to "step up enforcement."