Crypto Crackdown? Lawmakers fear cryptocurrencies could be back door for sanctioned rubles

Lawmakers on both sides of the aisle are worried about the potential of cryptocurrency to serve as an escape hatch for sanctioned Russian money, with some saying the risk hastens the need for legislation.

The anonymity provided by bitcoin and other cryptocurrencies could undermine the effectiveness of sanctions against Russia after its invasion of Ukraine, the lawmakers say. Industry advocates, however, say the technology provides greater transparency for law enforcement and warn against an overreaction by Congress and regulators. 

"Right now, we're putting sanctions in place through the formal legal system, and those sanctions are historic. They're very powerful," said Sen. Elizabeth Warren, D-Mass. "But Russia has backdoor access to finance."