US Treasury Official Warns Non-US Stablecoin Issuers About Risks of Bad Actors

During a speech at a Blockchain Association event in Washington, Deputy Secretary of the Treasury Wally Adeyemo warned about the dangers of non-U.S. stablecoin issuers that use dollar backing and their potential use by bad actors. He specifically called out dollar-backed stablecoin providers outside the United States for not putting in place procedures to prevent terrorists from abusing their platform. Adeyemo also expressed concern about the lack of action by some firms in preventing illicit activity, which he believes poses a risk to national security. Additionally, the Treasury sanctioned another crypto mixing service, Sinbad, for supporting transactions tied to North Korean hacking.