Deputy Treasury Secretary Wally Adeyemo issued a stern warning about the potential misuse of stablecoins by illicit elements in a speech at a Blockchain Association event in Washington.
Adeyemo did not target a specific stablecoin in his speech, but his comments were directed at stablecoin companies operating outside the US and pegged to the US dollar. The deputy minister argued that precautions should be taken against the use of these companies' platforms by terrorists:
“We cannot allow dollar-based stablecoin companies operating outside the United States to have the privilege of using our currency without preventing terrorist activity.”
It is estimated that Adeyemo was talking about Tether (USDT), although he did not give a name.
The deputy minister also referred to the speech he gave in 2022, in which he talked about the potential of cryptocurrencies as “an incredible opportunity for innovation.” Adeyemo said he was disappointed that the cryptocurrency industry was unable to take steps to prevent its use by criminal organizations and terrorists.
Adeyemo also criticized the inability of many companies in the cryptocurrency industry to make moves, describing it as a “clear and present risk to their national security.” In his speech, he cited the recent Binance deal as an example and claimed that the platform was used by terrorists and drug dealers.
Calling out to companies that do not comply with the law and mediate illegal activities in the cryptocurrency industry, Adeyemo issued a clear warning: “We will find you and hold you responsible.”
In his statement, the deputy minister argued that the cryptocurrency industry has a lot to take as an example from the US banking industry in terms of information sharing.
*This is not investment advice.