On March 17, the Senate Committee on Banking, Housing and Urban Affairs conducted a hearing titled, “Understanding the Role of Digital Assets in Illicit Finance,” which focused extensively on whether and how Russia could use digital assets to avoid sanctions, as well as how Ukraine is using cryptocurrency to support their fight against Russia.
In his opening statement, Chairman Sherrod Brown (D-OH) expressed concerns about offshore crypto companies not being subject to the U.S. laws, including the possibility that Russian actors can use cryptocurrency to avoid sanctions. Among other things, he noted that the Financial Crimes Enforcement Network (FinCEN) warned last week that Russian actors could use crypto to evade sanctions. In Senator Toomey’s (R-PA.) opening statement, he implored the committee to acknowledge the risks and benefits of crypto, emphasizing the need to protect technological innovation and individual freedom, while preventing criminal activity.
The panelists indicated that, although it is possible, there is no evidence at this time that Russia is systematically using cryptocurrency to evade sanctions.
