Title: No, Stablecoins Don't Aid Criminals in Laundering Money Directly – but Banks Want You to Think So
A recent article in The New York Times (published December 7, 2025) by reporter Aaron Krolik claims stablecoins enable criminals to launder money and evade sanctions, but the piece actually highlights vulnerabilities in crypto-to-cash conversion services and financial companies’ compliance shortcomings rather than issues inherent to stablecoins themselves.
Key Details from the Article
- Misleading Focus on Stablecoins: The article suggests stablecoins are the “new kid in town” for illicit activities, citing $25 billion in stablecoin transactions linked to crime in 2024 according to Chainalysis. However, it describes scenarios involving cash purchases via crypto ATMs and debit card issuance, pointing to intermediaries like Visa and Mastercard as the enablers, not the stablecoins (e.g., Tether or Circle-issued ones).
- Real Culprits Identified: The report emphasizes weak due diligence by financial service providers, such as inadequate KYC (Know Your Customer) measures, which allow criminals to convert crypto to fiat. It notes that stablecoin issuers like Tether have actively blocked over $3.4 billion in illicit funds, demonstrating sector efforts to combat crime.
- Broader Context on Money Laundering: Globally, money laundering totals up to $2 trillion annually, with the FBI estimating $300 billion in the U.S. alone each year. The article’s examples (e.g., using cash for stablecoins and obtaining debit cards) underscore systemic issues in traditional finance, not stablecoins, as these rely on established payment networks.
- Timing and Implications: The piece coincides with U.S. Senate debates on crypto market structure bills, where stablecoins are a focal point. Critics, including Coincenter’s Neeraj K. Agrawal, argue it exposes flaws in credit card companies and banking lobbies pushing anti-crypto narratives. Haun Ventures’ Rachael Horwitz accused banks of planting such stories to undermine stablecoins, which are key to extending U.S. dollar dominance globally.
- Industry Response and Societal Impact: Stablecoins are integral to U.S. policy for dollar hegemony, but the narrative risks stifling innovation. The article implies that stronger compliance in financial services could address laundering without targeting stablecoins, which have lower illicit volumes compared to fiat systems.
Quotes
- Neeraj K. Agrawal (Coincenter): “issues caused by a network of credit card issuing companies rather than stablecoins.”
- Rachael Horwitz (Haun Ventures): Accused the banking lobby of planting these stories to position stablecoins negatively.
No tables or lists were present in the core content. As stablecoins integrate further into global finance, strengthening compliance measures across the ecosystem could counter misleading narratives and enhance trust—would you support stricter KYC for crypto services to address these concerns?
