There is a New Threat Out There, and It Is Crypto: U.S. Senator Warns

US Senator Elizabeth Warren has sounded an alarm on the risks of cryptocurrency, calling it a new threat, especially in criminal activities like terrorist financing and drug trafficking. She talked about this in a CNBC interview, highlighting crypto's use in illegal activities.

There’s a new threat out there, it’s crypto,” and “it is being used for terrorist financing, drug trafficking, and North Korea is using it to pay for about half of its nuclear weapons program, She said.

Warren highlights her worries about the unregulated nature of cryptocurrencies. She points out that, although fiat money contributes to illicit activities more than cryptocurrencies, crypto contributions to these activities are still significant. However, Warren believes strict rules should apply to both fiat and crypto to prevent misuse.

The CEO of JPMorgan Jamie Dimon also criticized cryptocurrency recently, arguing that crypto is mainly used for crime due to its quick and anonymous transactions. 

Both Warren and Dimon are calling for stronger regulation of the crypto industry to address these issues. They believe government action is necessary to control the risks associated with cryptocurrency.