Senate Subcommittee on Crime and Terrorism to discuss the potential use of cryptocurrencies by foreign agents in order to influence American elections. He argued that lawmakers must focus on identity solutions to prevent undue foreign influence on upcoming elections.
Speaking on the issue of anonymity when impacting U.S. elections, he said:
“The exchange of digital assets can occur without the need for a central issuing authority. [He added that this makes them ‘tailor-made for money laundering.”
During the 2016 presidential election, cryptocurrencies were not widely used. Now, though, they are considered a “formidable weapon,” according to witnesses and senators. Senator Sheldon Whitehouse, a Rhode Island Democrat, reportedly said:
“Vladimir Putin and his oligarchs can use the exact same tactics that American special interests use to spend anonymous money in our elections and secure influence.”
In the U.S., bitcoin campaign political campaign contributions were first allowed by the Federal Elections Committee in 2014. However, the maximum that could be contributed by an individual was set at $100 though the FEC did not limit the amount of Bitcoin contributions that could be made to Super PACs (Political Action Committees).
According to Dueweke, the danger of using virtual currencies to influence the U.S. electoral process is acuter now considering that there are state actors who are hostile to the United States that are turning to cryptocurrencies as a way of bypassing the financial system of the West as well as its Anti-Money Laundering and Know-Your-Client regulatory requirements. Per Dueweke Russia was a particularly big threat.
Additionally, the upcoming November elections aren’t going to put a stop to the crypto market. At the end of the day, whether it’s the cryptocurrency market or dirty money that’s used, money laundering will still happen.