XRP Ripple LIVE Senate Brad Garlinghouse - FROM WALL STREET TO WEB3 - Martyn Lucas Investor - Ep18

it um and drake diss beefand not enableillicit activity. But from myunderstanding, blockchain technologyactuallyspecial treat for anyone who becomes amember during today's show.Security perhaps more resistant tomanipulation and transactions on theblockchain offer a unique ability fortracing and tracking includ includinganalyzing trends on the ledger. So Mr.Leven, can you speak to this both to thenarrative that digital assets areuntraceable and to what type of toolsare available to identify and actuallycombat bad actors? Thank you senator forthe question. This is exactly thebusiness that we at chain analysis havebeen building for the last 10 years. Webuild apologize for the audio. It'scoming from their end enforcementregulators businessestrack and trace cryptocurrency with therelevant context about where to getadditional information if there is somesort of investigation or some sort ofdisruption action that needs to happen.I would say that there are two levels oftooling that is worthwhile the committeeunderstanding which is one is there areactual forensic tools that are beingused in investigations where you arelooking at very specific transactions ofinterest that have been flagged eitherthrough regulatory reporting orinvestigations. And then also theblockchain actually allows for a muchmore macro view of trends and threatsthat are persisting against society. Andso you could actually investigateransomware as a whole threat to theUnited States of America and look at theentire supply chain that causesransomware to have impact on ourcommunities and7 billion. I didn't like the comment youmade towards Sensei and we take care ofour family. It wasn't very pleasant.Thank you so much and I am out of townto continue this conversation with youuh in particular how we empower ourstate and local law enforcement with theneed um so they're they're betterequipped in this regard. So thank you somuch and with that I will recognizeSenator Van Holland.Thank you Senator Britt and thank all ofyou for your your testimony here today.Mr. Msad, it's great to see you uh againuh this time this time in front of thefull committee.And Senator Brit's question is a goodplace to pick up because uh in BaltimoreCity a number of years ago, you mayremember uh we experienced a ransomwareattack. Um it was one of the earlierones that became wellknown and theattackers wanted to be paid in crypto.Uh and what we've seen with respect toransomware attacks is that they do forthe most part uh use crypto as their uhtheir currency of of choice. And we'vealso seen that with respect to entitiesthat engage in sanctions evasion. So Ithink there's a need to be very clearthat decentralized finance is fullycovered by our anti-money laundering andknow your customer regulatory regimes.Um, as we heard, there has beenimprovement in blockchain technology andblockchain technology does have some ofthese important um features uh thatcould make it easier to tracktransactions. Uh, but the fact also isthat about $2 billion was lost in cryptosecurity incidents in the first quarterof 2025 alone. Uh, nearly entarly theentirety of what was lost in all of2024. We have crypto mixers, crosschainbridges, and other methods to obscure.Thank you 107 billion currency. Sodifferent people here have differentideas of what certain words mean. Thankyou very much. Apology. Let's move on.Is subject to BSA and other uhregulations. We need effectivesupervision and enforcement. Can youtalk briefly about what challenges yousee today from to getting from where weare to that kind of enforcement thatwould be necessary to oversee them onpar with the current laws?Certainly, Senator. Uh first of all, Iwould suggest we think about what takesplace onchain and what takes placeoffchain. Mr. Leven, I have greatrespect for the work of of chainanalysis. They're focusing on activityon chain and they do a good job but wehave to remember they're only able toidentify illicit actors with wherethere's a known identifiable address andyou know there could be a lot of otheractivity happening. So I think we needbetter monitoring by issuers of digitalassets such as stable coin issuers needto be monitoring the chain need to beapplying risk analysis techniques and soforth. With respect to off-chainactivity though that's where a lot ofillicit activity takes place. It takesplace through centralized intermediariesand what chain analysis does doesn'treally reach a break. That's why we needan entire regulatory framework aroundthese brings me to prevent wash trading.We need to make them make sure they'redoing a good job on beneficialownership. And finally, I think we needto give the Treasury Department moretools to enforce sanctions, to enforcemoney laundering. And there were anumber of proposals made about two yearsago uh that would enhance itsauthorities um because digital assetsare bearer instruments and they can betransferred, you know, on blockchains.And so I think the Treasury Departmentneeds greater authority to imposeuh sanctions and other measures onoffshore entities uh that might beharboring uh this activity. And there'sa variety of other things I'd be happyto discuss with you.I appreciate that. Um want to turn toyou, Mr. Painter. And um you indicate inyour testimony and your writings thatthe avoidance of even the appearance ofa conflict of interest, the appearanceof corruption is critical to ensuringpublic integrity um of the cryptomarkets. And I agree uh with that thatstatement. Um, would you agree that whenEric Trump visited the UAE shortly inadvance of President Trump's visit thereum and helped broker a transaction wherethe UAE stateowned firm MGX um executeda $2 billion transaction um in the Trumpfamily stable coin uh that that createsthe appearance at least of a conflict.That's why I said sorry. It's I'm onlyjoking and uh it may be a lot more thanthe appearance of conflict of interest.I'm not ringing a bell.The president of course followed up avisit of his own there and made a dealwith a separate uh UAE state-ownedcompany uh that allowed the transfer ofvery sensitive US chips and AItechnology uh to that other companycalled G42. It turns out that the chairof G42, the company that received thesort of crown jewels of US a tech US AItechnology and the chair of the companyMGX that Eric Trump did the deal with isthe same person.Would you agree that that also createsthe stench of corruption?It certainly does.I think it's pretty straightforward aswell for anybody looking at the facts.Thank you, Mr. Chairman.Senator Blunt Rochester.Thank you, Mr. Chairman, and thank youto the witnesses. Um, I I really welcomethis

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