Robert Menendez, the US Senator wants Washington to take serious actions against Venezuela’s national newly launched oil-backed cryptocurrency, Petro. In the past, Menendez was also against petro coin.
The president of Venezuela, Nicolas Maduro launched the oil-backed cryptocurrency, Petro on last week. It had a successful first day opening with $735 million. The crypto was launched in order to bypass the US sanctions and fight the hyperinflation rampant in Venezuela.
As a result, petro made senators really nervous. Last month, Senators Marco Rubio and Bob Menendez wrote a letter to Treasury department asking to monitor the progress of petro. They stated how this crypto can breach the US sanctions.
We are concerned that a cryptocurrency could provide Maduro a mechanism by which to make payments to foreign lenders and bondholders in the United States, actions that would clearly thwart the intent of US imposed sanctions.
Later, during the hearing of Senate Committee, where chairman of CFTC Giancarlo and SEC chairman jay Clayton talked about cryptocurrency, senator Menendez raised this topic again in order to urge the officials to take actions against petro.
In response, CFTC Chairman Christopher Giancarlos stated that his agency would keep a careful watch on the petro currency.
US persons that deal with the prospective Venezuelan digital currency may be exposed to US sanctions risk.
U.S. Department of the Treasury
According to a spokesperson of Menendez, the Senate will continue to look for ways to prevent the Maduro regime from brazenly evading US sanctions and plan to follow up with the Department of Treasury following their issuing of these guidelines.