Treasury’s Wally Adeyemo: My agency needs more power to regulate crypto 

Digital asset firms face potential new regulatory landscape under Treasury’s proposed authority expansion

article-image

US Treasury Deputy Secretary Wally Adeyemo | Artwork by Crystal Le

share

US Treasury Deputy Secretary Wally Adeyemo has a message for digital asset firms: Get in line, or end up like Binance. 

“I hoped the digital asset industry would take up this call to partner with government, design new tools and pursue new ways to protect digital assets from being abused,” Adeyemo said at the Blockchain Association Policy Summit in Washington DC Wednesday. 

While many digital asset firms have taken steps toward compliance, others have failed to act. According to Adeyemo, this “represents a clear and present danger for national security.” 

The Treasury Department sent a legislative proposal to Congress on Tuesday asking for additional authority to oversee the crypto space, including allowing it to step outside of the United States. 

Read more: From SBF to Binance: Biggest court cases of 2023

Treasury officials have asked Congress to expand the International Emergency Powers Act to explicitly allow the agency to “designate blockchain nodes or other elements of cryptocurrency transactions,” according to a copy of the proposal obtained by Blockworks. 

Some industry members argue that given the Treasury’s apparent success thus far in sanctioning exchanges, mixing services and other actors, granting the agency greater authority is unnecessary. 

The rules cannot always keep up with the technology, Adeyemo said in response to the criticism. 

“The thing that I learned most from being at Treasury during the financial crisis is that innovation outpaced regulation,” he added. “Our goal is to make sure that we have the flexibility.” 

Read more: Treasury urges crypto companies to ‘prevent’ terrorist financing

Adeyemo’s remarks came hours after his office announced sanctions against cryptocurrency mixing service Sinbad for allegedly facilitating North Korea state-sponsored hacking group Lazarus’ money laundering. 

For illicit actors, the digital asset ecosystem is the “prefered” method of moving assets, as opposed to the traditional financial system, Adeyemo said. 

“My message is simple: We will find you and hold you accountable,” he said to the digital asset industry and those enabling or facilitating illicit actions.


Get the news in your inbox. Explore Blockworks newsletters:

Tags

Upcoming Events

Old Billingsgate

Mon - Wed, October 13 - 15, 2025

Blockworks’ Digital Asset Summit (DAS) will feature conversations between the builders, allocators, and legislators who will shape the trajectory of the digital asset ecosystem in the US and abroad.

Industry City | Brooklyn, NY

TUES - THURS, JUNE 24 - 26, 2025

Permissionless IV serves as the definitive gathering for crypto’s technical founders, developers, and builders to come together and create the future.If you’re ready to shape the future of crypto, Permissionless IV is where it happens.

Brooklyn, NY

SUN - MON, JUN. 22 - 23, 2025

Blockworks and Cracked Labs are teaming up for the third installment of the Permissionless Hackathon, happening June 22–23, 2025 in Brooklyn, NY. This is a 36-hour IRL builder sprint where developers, designers, and creatives ship real projects solving real problems across […]

recent research

Featured.png

Research

Helium stands at a pivotal moment in its evolution as a decentralized wireless network, balancing rapid growth, economic restructuring, and global expansion. With accelerated growth in domestic DAUs and Hotspots supporting its network, Helium is leveraging strategic partnerships and innovative proposals to scale internationally. The recent implementation of HIP 138, “Return to HNT,” has unified its token economy under HNT, simplifying participation and strengthening liquidity, while HIP 139’s phase-out of CBRS refocuses efforts on scalable Wi-Fi offload. Meanwhile, governance shifts under HIP 141 raise questions about centralization as Nova Labs consolidates control over the roadmap.

article-image

“Be prepared to do more with less,” Framework Ventures’ Michael Anderson said

article-image

Q1 may have been “frustrating,” but things are looking brighter for Q2

article-image

Tokens worth 20% of the current supply of the TRUMP memecoin launched by the president are set to be unlocked tomorrow

article-image

A crypto-industry lawsuit is “moot” now that Joint Resolution 25 has been signed into law

article-image

Fed Chair Powell assured markets that the labor market is in “good place,” dependent on price stability

article-image

As uncertainty reigns, the Philly Fed manufacturing index fell to a multi-year low, but layoffs have slowed