The U.S. deputy treasury secretary, Wally Adeyemo, has called for the expansion of the U.S. Treasury's authority by seeking additional tools to sanction crypto firms. Adeyemo referenced a recent settlement with Binance and sanctions against the crypto mixer Sinbad as examples. He expressed the need for Congress to enable sanctions that could entirely cut off an entity from the U.S. financial system.
This move is aimed at preventing entities like Hamas from finding refuge in the digital asset ecosystem. Adeyemo cited Binance's involvement in facilitating illegal activities, such as child sexual abuse, narcotics trafficking, and terrorism-related transactions, as a basis for the call for increased authority.
To enhance efforts against illicit activities, Adeyemo emphasized the importance of coordination between the U.S. government and financial sector companies. This collaboration would involve sharing information to combat money laundering, fraud, and the financing of terrorism. Additionally, he suggested that stablecoin providers located outside the U.S. could become targets as authorities work to address regulatory gaps.
Adeyemo's statements coincided with the U.S. Treasury's Office of Foreign Assets Control imposing sanctions on crypto mixer Sinbad, alleging its involvement in laundering funds for the North Korea-based Lazarus Group.
In a related development, Binance settled with U.S. authorities in a $4.3 billion deal on November 21, leading to former CEO Changpeng Zhao stepping down and pleading guilty to one felony charge. In August, the U.S. Treasury released draft rules aimed at addressing challenges in reporting and taxing crypto transactions, with the controversial reporting requirements for brokers set to take effect in 2026.
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