- Republican lawmakers have urged the DOJ to investigate Binance and Tether for possibly enabling terrorism by violating sanctions laws after recent attacks against Israel.
- Binance and Tether have faced increased regulatory scrutiny over the past year, with the CFTC suing Binance for lax compliance and Tether fined for backing issues with USDT.
- In a letter, Senator Lummis and Representative Hill called for urgent action against Binance and Tether, citing reports of Tether freezing addresses linked to Hamas and Russian entities. They said crypto can enable innovation but these companies must be held accountable.
Republican lawmakers have urged the Department of Justice to investigate whether major crypto companies like Binance and Tether may be enabling terrorism by violating sanctions laws. This comes after recent attacks against Israel.
Binance and Tether in Regulators’ Crosshairs
Both Tether and Binance have faced increased scrutiny from regulators over the past year. The CFTC sued Binance for allegedly violating federal laws with its lax compliance approach. Tether was also fined in 2021 for issues backing its USDT stablecoin.
Lawmakers Call for Swift Action
In a letter to the DOJ, Senator Cynthia Lummis (R-Wyo) and Representative French Hill (R-Ark) called for urgent action against Binance and Tether. They cited reports that Tether had frozen addresses linked to Hamas and Russian entities. The lawmakers said crypto can enable innovation but Binance and Tether must be held accountable.
The lawmakers’ letter shows ongoing concerns about potential illicit activity in crypto. But they also acknowledged the technology’s potential benefits. As regulators continue scrutinizing the space, companies will need to ensure they follow laws against money laundering and sanctions violations. Strong compliance programs will be key for crypto to gain mainstream adoption.