[Senator Warren faces resistance from cryptocurrency community over sanctions evasion charges]
Recently, U.S. Senator Elizabeth Warren’s critical remarks about the cryptocurrency industry sparked a strong reaction from the industry. In a post on X (formerly Twitter) on January 21, she quoted a U.S. Government Accountability Office (GAO) report saying that “rogue states” use cryptocurrencies to evade sanctions and threaten national security. However, the encryption community believes that her remarks are too simplified and ignore the positive contributions of the industry.
The GAO report discusses the use of cryptocurrencies such as Bitcoin in countries subject to U.S. sanctions. The report mentioned that these digital assets can quickly complete cross-border fund transfers and may be abused to avoid sanctions. But GAO also noted that the decentralized and open-ledger nature of cryptocurrencies may help U.S. agencies track such transactions.
Despite these insights, Warren insists the report confirms her concerns that the industry is involved in illegal activity. The crypto community reacted strongly, using the X Community Notes feature to fact-check his comments. Meanwhile, Coinbase General Counsel Paul Grewal criticized the GAO report for lacking comparative analysis and noted that digital assets are not an effective way to circumvent sanctions.
Digital Chamber of Commerce CEO Perianne Boring also opposed Warren’s view, arguing that her proposed bill would effectively be a ban on cryptocurrencies and would weaken national security. Community members described Warren as "anti-innovation" and challenged her narrative of non-compliance by pointing out that many crypto companies already operate within legal norms.
