Prominent U.S. Lawmakers Stress the Need for Swift DOJ Action
As the U.S. Department of Justice evaluates possible criminal charges against Binance and Tether, U.S. Senator Cynthia Lummis and Representative French Hill are emphasizing the urgency of the matter. In a letter to Attorney General Merrick Garland, they insist that the DOJ swiftly concludes its investigations into the two companies. The core concern revolves around the potential role of these cryptocurrency platforms in facilitating financial transactions for Hamas and other terrorist organizations.
U.S. Senator Cynthia Lummis, a member of the Senate Banking Committee with a history of advocating for measured regulation of cryptocurrencies, has previously drafted crypto-related legislation. Representative French Hill, who chairs the Subcommittee on Digital Assets in the House Financial Services Committee, also supports the regulation of cryptocurrencies.
“The DOJ must take decisive action on Binance and Tether’s potential involvement in crypto funded terrorism,” emphasize Lummis and Hill.
Allegations of Neglect and Complicity
The lawmakers allege that Binance and Tether may have been complicit in violations of sanctions by neglecting due diligence procedures. They assert that Binance’s current cooperation should not absolve them of criminal culpability, as the platform knowingly enabled terrorist organizations to use their services. Similarly, Tether failed to adequately screen customers while being aware that its services were being used to fund Hamas and other groups.
Implications and Precedents for Crypto Regulation
The DOJ’s decisions regarding Binance and Tether could have significant implications for crypto regulation and its relation to international disputes. The involvement of lawmakers adds complexity to the narrative of how crypto assets like Bitcoin can be weaponized financially. While the scale of crypto funding is contested, the lawmakers stress that holding bad actors accountable for facilitating illicit activity is crucial.
“It is imperative that the Department of Justice hold bad actors accountable if they are shown to facilitate illicit activity,” affirm Lummis and Hill in their letter.
The outcome of the DOJ’s investigation could serve as a bellwether for broader crypto regulation, as other financial services are also under scrutiny for their roles in crypto funded terrorism linked to the Hamas-Israel conflict. The market anticipates the DOJ’s decision with anticipation, with its impact already partially priced into the financial sector.
