Gensler’s Final Words on Bitcoin and Warren’s Call for Stricter Crypto Oversight

Warren Urges Treasury to Tighten Crypto Oversight

Meanwhile, Senator Elizabeth Warren has intensified her anti-crypto campaign, urging incoming Treasury Secretary Scott Bessent to consider broader regulatory powers over the industry. In a January 12 open letter, Warren asked whether the Treasury’s Anti-Money Laundering (AML) and Counter-Terrorism Financing (CFT) programs should include risk-based provisions for digital assets.

“Bad actors are also increasingly turning to cryptocurrency to enable money laundering, sanctions evasion, and to finance major national security threats, such as Russia’s invasion of Ukraine, North Korea’s nuclear program, China’s sale of weapons parts to sanctioned nations, and ransomware attacks,” Warren wrote.

The Massachusetts senator also questioned whether stablecoins should fall under the jurisdiction of the Office of Foreign Assets Control (OFAC) and whether Congress should extend the Bank Secrecy Act (BSA) to cover foreign companies serving U.S. clients. Warren’s stance has drawn sharp criticism from crypto advocates, with Alexander Grieve of Paradigm describing her efforts as a “casus belli” for broader AML regulations targeting crypto technology providers.

As the SEC and the Treasury potentially move in opposite directions—one towards regulatory alignment and the other towards greater scrutiny—the next chapter of U.S. crypto regulation remains uncertain. Will Atkins’ potential leadership at the SEC bring relief to the sector, or will Warren’s influence tighten the grip on crypto innovation?