US lawmakers and Fed chair push for crypto regulation in wake of Russia sanctions
Federal Reserve Chair Pro Tempore Jerome Powell and some members of the U.S. House of Representatives called for congressional action on crypto in response to discussions about Russia potentially evading sanctions.
In a Wednesday hearing of the House Financial Services Committee on “Monetary Policy and the State of the Economy”, California Representative Juan Vargas asked Powell if cryptocurrency could be a "way out" for Russia looking for financial transactions in the wake of the U.S. and European Union cutting the country off from the SWIFT payments network. The Fed chair said that the situation with Russia "underscores the need for really congressional action on digital finance, including cryptocurrencies," adding:
Connecticut Representative Jim Himes echoed Powell’s sentiment at the hearing, lauding the effectiveness of the sanctions against Russia. However, he added that the U.S. not leading the world in regulatory clarity of cryptocurrencies left the door open to foreign nations that may not always have the best intentions.
“It is time, in fact it is past time for all of us to lead on creating a regulatory environment in which we rather than the world’s despots, terrorists, and money launderers benefit from the emergence of cryptocurrency including a central bank digital currency,” said Himes. “It is time for all of us to act.”
On the other side of the hill, Senate Banking Committee members Elizabeth Warren, Mark Warner, Sherrod Brown, and Jack Reed penned a letter to Treasury Secretary Janet Yellen on Wednesday expressing concerns that Russia and other nations could use crypto to “hide cross-border transactions for nefarious purposes” including undermining sanctions. The lawmakers cited North Korea using “stolen
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