• The US Senator Elizabeth Warren is reportedly enlisting in a “anti-crypto army”.
• She is taking advice from Wall Street short-seller Marc Cohodes who profited from the recent collapse of crypto banks.
• Crypto natives are concerned about the industry’s failure to address valid concerns about financial crime and national security.
Elizabeth Warren’s “Anti-Crypto Army”
The United States Senator Elizabeth Warren is reportedly joining forces with Wall Street traders, progressive Democrats, and Republican national security hawks to form an “anti-crypto army”. The alliance is a result of her collaboration with Marc Cohodes, a Wall Street short seller who profited from the recent carnage at crypto banks such as Silvergate and Signature banks.
Risks of Noncompliance
The memo circulated by Cohodes on Capitol Hill flagged “existential” regulatory risks regarding Know Your Customer (KYC) and Anti-Money Laundering (AML) liabilities for Silvergate Bank. These rules require U.S. financial institutions to properly due diligence their customers or face potential consequences for noncompliance.
Silvergate Bank as an Example
Silvergate was reportedly being used by over dozen crypto companies that faced investigations, fines, bankruptcy, or shutdowns such as FTX exchange. According to reports, Silvergate even had questionable involvement in helping FTX siphon user deposits into its sister fund Alameda – ultimately leading to its own downfall in March of 2022. This serves as an example of how rampant KYC/AML compliance issues are within the crypto industry at large that could potentially have serious repercussions for any involved parties if not addressed properly .
The Impact of Unaddressed Concerns
The lack of reliable solutions addressing these valid concerns related to financial crime and national security has led to increased mistrust among various stakeholders within the American political landscape – thus contributing to the formation of this anti-crypto army lead by Sen. Elizabeth Warren .
It is clear that Web3 will need to make significant changes in order to address these important concerns or else risk continued opposition from various political factions in the United States .