Elizabeth Warren slams SEC over decision to allow spot bitcoin ETFs, says crypto needs to follow anti-money laundering rules

Sen. Elizabeth Warren, D-Mass., slammed the Securities and Exchange Commission for approving spot bitcoin exchange-traded funds and called for anti-money laundering rules to be urgently applied to crypto. 

The Senate Banking Committee member, who historically has not been a fan of crypto, criticized the agency's move to approve 11 spot bitcoin ETFs in a Thursday post on X. 

"The @SECgov is wrong on the law and wrong on the policy with respect to the Bitcoin ETF decision," Warren said. "If the SEC is going to let crypto burrow even deeper into our financial system, then it's more urgent than ever that crypto follow basic anti-money laundering rules."

Warren has been pushing to advance her Digital Asset Anti-Money Laundering Act over the past year and has gained support from 19 other senators, including Sen. Lindsey Graham, R-S.C. Most of the cosponsors are Democrats. The bill aims to extend Bank Secrecy Act requirements including know-your-customer rules to miners, validators, wallet providers and others. 

Lawmakers also call for their legislation

Other crypto-friendly lawmakers have supported the SEC's move to approve spot bitcoin ETFs and said it underscored the need for their legislation. 

"It will provide millions of Americans with easier access to crypto assets and allow them to benefit from professional managers and more competitive fees," Sen. Cynthia Lummis, R-Wyo., said on Wednesday on X, while pushing for her bill with Sen. Kirsten Gillibrand, D-N.Y., to rein in crypto. 

House Financial Services Committee Chair Patrick McHenry, R-N.C., also called for legislation in a X post on Wednesday. 

"While legislation to provide clarity and certainty for digital assets remains necessary, the steps taken today are a significant improvement over the SEC's track record of regulation by enforcement," McHenry said.