Senators Elizabeth Warren and Bill Cassidy have directed inquiries to the Department of Justice and the Department of Homeland Security regarding their efforts to prevent cryptocurrency from being utilized in the trade of child sexual abuse material (CSAM).
In a letter addressed to Attorney General Merrick Garland and Secretary of Homeland Security Alejandro Mayorkas, the Massachusetts Democrat and Louisiana Republican sought clarity on the measures currently in place and those required to combat the issue.
They emphasized the role of cryptocurrency’s pseudonymity in facilitating swift transactions related to CSAM within the crypto realm, underscoring their commitment to equipping Congress and the Administration with the necessary tools to eradicate CSAM and hold its purveyors accountable.
Citing various reports, including one from blockchain forensics firm Chainalysis, which highlighted a concerning rise in crypto-based sales of CSAM, the senators underscored the increasing sophistication of CSAM sellers, making detection and takedowns more challenging over time.
Additionally, they referenced a report from the Treasury’s Financial Crimes Enforcement Network, indicating a growing trend of perpetrators of online child sexual exploitation turning to convertible virtual currency (CVC) to evade detection.
Warren and Cassidy posed a series of questions to both departments regarding the unique challenges posed by the use of cryptocurrency in paying for CSAM and sought insights into the additional tools needed to address the issue effectively. They requested a response by May 10.
Warren, known for her critical stance on cryptocurrency, has faced criticism from the industry in recent years. She has introduced a bill aimed at combating the alleged use of cryptocurrency in illicit finance, proposing to extend Bank Secrecy Act requirements, including know-your-customer rules, to miners, validators, wallet providers, and other entities.
In response, the crypto industry has expressed reservations about Warren’s bill and has sought clarifications regarding cryptocurrency’s role in illicit finance.
