Senate Banking Tackles Crypto Sanctions Compliance

Reflecting ongoing developments, Senate Banking Chairman Brown (D-OH) and several of his Democratic colleagues today wrote to Secretary Yellen heightening their longstanding crypto concerns to specific questions about the extent to which digital assets and exchanges are appropriately captured in AML, sanctions, and CFT regulation.  They note in particular the potential for Russia to evade sanctions in the cryptosphere, an issue we anticipated in our policy assessment (see FSM Report SANCTION16).

HFSC Powell Hearing Focuses on Monetary Policy, Geopolitical Risk

As anticipated, today’s HFSC hearing with Fed Chair Powell was almost exclusively focused on Ukraine and the decisions ahead for the FOMC at its mid-March hearing.  Mr. Powell made it clear that, while he bemoaned the tragedy unfolding in Ukraine, sanctions policy is outside the Fed’s remit and cyber-risk is being handled to the greatest extent possible.  Mr. Powell refused to comment on the Senate stalemate over pending Fed nominations.