Senator Elizabeth Warren Doubles Down on Crypto Criticism Amid Loss of Support

Senator Elizabeth Warren has continued her vocal opposition to cryptocurrencies, despite losing some of her legislative backing.

On July 25, during a Senate Committee on Banking, Housing, and Urban Affairs hearing, Warren raised alarms about the national security risks posed by foreign-owned crypto mining operations.

Warren argued that these operations could be exploited by foreign entities to monitor US military activities and jeopardize the nation’s energy infrastructure. She described these mining facilities as environmentally damaging and prone to causing power grid failures due to their high energy consumption.

The senator also expressed concerns about how foreign buyers use cryptocurrencies to acquire mining operations in the US, bypassing traditional financial regulations. She cited a case where a Chinese investor used digital assets to secretly purchase a $6 million mining site in Texas.

Warren is advocating for tighter anti-money laundering laws to address these issues, but her efforts face diminishing support. Republican Senator Roger Marshall recently withdrew his backing from the Digital Asset Anti-Money Laundering Act (DAAMLA), a bill he co-sponsored with Warren in 2022. This leaves 18 lawmakers in favor of the bill. Critics argue that the legislation could stifle the growth of the crypto sector.