As Russia’s self-styled “special operation” against Ukraine continues, crippling economic sanctions remain the Western powers’ primary weapon to counter Russia’s military actions without triggering an even more dramatic escalation. As NATO and allies’ financial offensive unfolds, ensuring that the collective West presents a united front remains political leaders’ chief concern. The global crypto industry keeps getting suspicious looks as some agents of state power are seemingly entrenched in their beliefs that digital assets could be the weak spot undermining the efficiency of the sanctions push. Despite ample evidence to the contrary — including the FBI director’s Congress testimony — there are signs of increased regulatory pressure on the crypto industry participants, as well as policy initiatives that clearly capitalize on the situation to tighten state control of digital assets’ circulation.
Few of those who follow the developments in the crypto policy space were surprised to learn that United States Senator Elizabeth Warren was hard at work drafting a bill that would impose additional disclosure requirements on crypto exchanges. According to some observers, the military conflict could also have contributed to U.S. President Joe Biden finally authorizing the long-anticipated executive order on digital currencies.