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Tornado Cash, a cryptocurrency mixing protocol, has reemerged as a point of contention in the U.S. Senate Banking Committee’s debate over the CLARITY bill, underscoring the continuing fight over anti-money laundering rules.
Eleanor Terrett, host of Crypto in America, reported on May 14 that Democratic Senator Elizabeth Warren raised Tornado Cash during the bill’s markup.
Addressing Senator John Kennedy, Warren said: “It’s the Tornado problem. Remember that mixer? What exactly was Tornado used for? It was used for terrorists to put money in.”
Republican lawmakers have argued that the CLARITY bill can address illicit money laundering and regulatory gaps.
Warren, meanwhile, has criticized the legislation as failing to adequately address money laundering and criminal misuse.
Tornado Cash is a crypto mixing protocol that makes transactions harder to trace. It was previously sanctioned by the U.S. Treasury Department.
Markets are watching the CLARITY debate for clues on how regulation of decentralized finance, or DeFi, and privacy protocols may evolve.
JH Kim
reporter1@bloomingbit.ioHi, I'm a Bloomingbit reporter, bringing you the latest cryptocurrency news.
