The crypto industry is lobbying U.S. lawmakers against two bills aimed at preventing Russian oligarchs from using crypto currency to avoid sanctions. The United States and many other countries have imposed sanctions on them after Russia began its invasion of Ukraine.
Bills Preventing Rich Russians from Using Crypto to Avoid Sanctions
The Blockchain Association has lobbied U.S. lawmakers against two bills aimed at preventing Russian oligarchs from using cryptocurrency to avoid sanctions imposed on them after Russia began its invasion of Ukraine, CNBC reported last week.
The first is a House Bill entitled “2022 Digital Assets Compliance Act.” The other is a Senate bill sponsored by cryptic skeptical Senator Elizabeth Warren (D-Mass) entitled “2022 Digital Assets Compliance Improvement Act.”
The bills give the Biden administration the authority to ban U.S. crypto exchanges from processing payments from Russia. They would also allow U.S. authorities to sanction foreign exchanges to process transactions of sanctioned Russian people or companies.
The organization represents more than 70 crypto platforms, including AAVE, Anchorage Digital, Ava Labs, Bitdeer, Blockchain Capital, Blockfi, Brevan Howard, Chainalysis, Circle, Crypto.com, Digital Currency Group, Dragonfly Capital, Etoro, Grayscale, Kraken, Ripple. , Silvergate, Solana, Terra, Voyager, and Wicklow Capital.
The group is trying to convince lawmakers that cryptocurrency is not being used by wealthy Russians to avoid sanctions.
Curtis Kincaid, a spokesman for the Blockchain Association, explained that the organization was trying to convince lawmakers to “separate a fact from fiction about Russia’s inability to deliver large sums of money through cryptocurrencies to avoid sanctions,” the publication reported.
Lawyer Jake Chervinsky, political leader of the association, commented:
These bills are not aimed at Russian oligarchs who do not use (& cannot use) crypto to avoid sanctions. They are targeting standing U.S. crypto companies for no apparent reason other than Senator Elizabeth Warren’s campaign against technology she doesn’t understand.
While some lawmakers are concerned about the use of crypto to avoid sanctions, many experts have said that crypto is not an effective tool for sanctions. A U.S. Treasury official said in March: “We don’t see a cryptocurrency being able to be used on a large scale to avoid sanctions.”
What do you think of the legislation aimed at preventing Russian oligarchs from using crypto to avoid sanctions? Let us know in the comments section below.
Image Credits: Shutterstock, Pixabay, Wiki Commons