US Senator Elizabeth Warren plans to introduce a bill that will prevent cryptocurrencies from cushioning against economic sanctions.
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One of the draft provisions compels crypto exchanges to forward records of crypto addresses and transfers to the Treasury Department.
The draft’s objective is to impose secondary sanctions against digital assets exchanges that want to do business with sanctioned individuals and companies.
The Financial Crimes Enforcement Network division of the Treasury Department is also drafting similar provisions based on the bill.
Warren’s move comes as the US administration moves to ensure that Putin will not use cryptocurrencies to circumvent economic sanctions.
The Ukrainian deputy minister of digital transformation, Alex Bornyakov, has been rallying crypto exchanges to ban Russian users, despite major players opposing the move.
Blockchain Association’s Jake Chervinsky notes that the Russian administration cannot use crypto to evade sanctions due to the lack of infrastructure and the inadequate capabilities of the sector.