Senate banking panel markup faces criticism over crypto bill risks

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Senate panel crypto bill risks

Highlights

Warren criticizes H.R. 3633 in Senate Banking Committee, claiming it serves crypto industry interests over consumer protections and lacks adequate public hearings.
More than a dozen proposed amendments, including anti–money laundering measures backed by the National Sheriffs Association and banking protections, were blocked on procedural grounds.
Warren highlights national security concerns, referencing a recent Treasury Department alert on Iran's use of crypto for illicit transfers and unresolved issues in the GENIUS Act.

Committee debate centers on bill safeguards

As reported by the Senate Committee on Banking, Housing, and Urban Affairs, Warren delivers opening remarks opposing H.R. 3633 and says the measure reflects crypto industry interests rather than consumer protection priorities.

She says the committee has not held a single public hearing on the bill despite requests from several senators, and she criticizes the chairman for ruling out more than a dozen amendments on procedural grounds. Warren says those blocked changes include a proposal backed by the National Sheriffs Association to address money laundering through decentralized platforms and a community bank-backed fix aimed at limiting deposit flight from the banking system.

Warren argues the legislation is not ready for advancement, saying it would weaken securities laws that have protected investors for decades and strip away many state-level anti-fraud protections for crypto users. She also says the bill repeats financial crisis-era mistakes by allowing banks to take on risky exposures while leaving taxpayers vulnerable if losses spread through the system.

Consumer, security and ethics concerns intensify

Warren says the measure also raises national security concerns, pointing to a Treasury Department alert issued three days earlier warning that Iran is exploiting crypto businesses to move money. She adds that public analyses show drug cartels are shifting money laundering activity into crypto channels faster than law enforcement can respond.

She further says the legislation fails to address what she describes as crypto-related corruption tied to the Trump administration, arguing that elected officials should not profit from crypto while shaping or enforcing its rules. Warren says Republicans previously promised that a second crypto bill would close national security loopholes, address ethics concerns and resolve other gaps left in the GENIUS Act, but she contends those issues still remain in the version now before the committee.

Her remarks frame the markup as a test of whether lawmakers strengthen the bill before moving it forward. Warren says neither Republicans nor Democrats should advance the measure out of committee until its core flaws are fixed.

Our earlier report on World Liberty Financial (WLF) covered how Senators Elizabeth Warren and Jack Reed urged the Treasury and Justice Department to investigate the firm over apparent sanctions-compliance and counter-illicit-finance failures tied to sanctioned individuals. They argued the case raised broader questions about how crypto platforms vet partners, counterparties, and users as Congress considers crypto market structure legislation and related safeguards.

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