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Senator Accuses Biden Administration Of Blaming Crypto To Hide Failures In Stopping Illegal Finance

American Senator Tim Scott alleged that the Biden Administration used Bitcoin & crypto as a ‘scapegoat’ to mask failures in halting illicit finance. 

The crypto sector in the US jurisdiction is still evolving under an unregulated environment. The United States Securities and Exchange Commission (SEC) tried its best to regulate this innovative sector under the traditional financial rules of the Securities Act but faced criticism from the crypto entrepreneurs. Crypto companies executives called the regulation of the crypto sector under the Securities Act a totally bad approach to regulation of this new sector, as traditional financial rules are not clear enough to define the legal nature of the crypto assets. 

In the last couple of years, the whole crypto industry saw how the American authorities showed an inclination toward the crypto sector, to bring a new road bump against crypto adoption. The majority of the legal decisions were highly controversial but still the US government passed. 

Only a good thing that happened for the crypto sector, at the beginning of this year, was the approval of Bitcoin spot ETF applications, thanks to the legal efforts by the digital assets fund manager Grayscale & further support of other giant players like Coinbase, BlackRock, and Nasdaq. 

On 9 April 2024, During the Senate hearing, US Senator Tim Scott said that the US government is blaming digital money like cryptocurrencies for terrorism money, but they’re ignoring bigger, older ways terrorists get money, especially from Iran.

Scott also raised concerns over the Treasury’s exclusive requests for expanded authority over Bitcoin & Cryptocurrencies to the Senate Committee on Banking, Housing, and Urban Affairs.

According to Scott, the Biden Administration raised concerns against cryptocurrencies, which is a very narrow thing over the traditional financial system. 

Furthermore, the US Senator dragged attention toward Iran’s $35 billion in oil exports and an additional $16 billion in US hostage relief and electricity waivers, which, according to Scott, facilitate the Iranian government’s misuse of funds. 

In this way, Scott explained that the Biden Administration used the crypto sector as a ‘scapegoat’ to hide failures in prohibiting illicit finance from occurring in the traditional financial system.

Read also: Cardano founder says the 2024 bull run is not much better & clearer over 2021

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