Senators Elizabeth Warren and William Cassidy are pressing U.S. drug agencies for updates on their efforts to combat the use of cryptocurrency in the fentanyl market. In a letter dated May 29, the senators emphasized the increasing involvement of crypto in facilitating the fentanyl trade.
Call for Action
The letter, addressed to Rahul Gupta, Director of the Office of National Drug Control Policy, and Anne Melissa Milgram, Administrator of the Drug Enforcement Administration (DEA), demands a detailed account of the Biden Administration’s actions to curb drug traffickers’ use of crypto. Warren and Cassidy highlighted that cryptocurrencies are becoming more prominent in the fentanyl industry, with significant amounts entering the U.S.
Specific Inquiries
The senators requested responses by June 14 on several points:
- The extent of cryptocurrency’s role in drug trafficking.
- Upcoming initiatives within the next 12 months to address this issue.
- Metrics for measuring success in combating illicit cryptocurrency use in the fentanyl trade.
- Challenges faced by the agencies in preventing the use of cryptocurrency in illegal drug transactions.
Investigative Findings
The senators referenced a May 2023 investigation revealing that approximately 80 Chinese companies supplying fentanyl precursors received nearly $30 million in cryptocurrency payments. This amount is sufficient to produce $54 billion worth of fentanyl pills, underscoring the gravity of the issue.
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Previous Criticisms
Warren has faced criticism for allegedly citing misconstrued data in her anti-crypto stance. She referred to an October 2023 Wall Street Journal article that inaccurately reported the extent of Hamas’s use of cryptocurrency for funding terrorism. The WSJ later corrected this information, but Warren did not publicly address the error.
Political Developments
U.S. attorney and XRP advocate John Deaton has announced his intention to challenge Warren for her Massachusetts Senate seat. Deaton expressed eagerness to debate Warren on various issues, including income inequality and the opioid crisis.
