Washington, D.C. — July 9, 2025 — Blockchain technology can significantly bolster efforts to combat financial crime and enhance transparency across global markets if U.S. regulators embrace its core features, said Jonathan Levin, Co-founder and CEO of Chainalysis, during a Senate Banking Committee hearing on Wednesday.
The hearing, titled “From Wall Street to Web3: Building Tomorrow’s Digital Asset Markets,” focused on shaping the future of blockchain and digital asset regulation in the United States.
Blockchain Offers a New Model for Financial Oversight
Speaking before the committee, Levin emphasized that blockchain presents a fundamentally new model for overseeing financial activity—one that relies on publicly available data rather than traditional closed systems.
“Blockchain’s transparency, speed, and programmability can help regulators build a more secure and efficient financial infrastructure,” Levin said in his prepared remarks. “We’re here to prevent abuse and to pave the way for safe adoption by people, businesses, and governments.”
He urged policymakers to design a regulatory framework that reflects this shift, stressing that the architecture of blockchain enables real-time oversight that wasn’t possible in traditional finance. By utilizing blockchain data, authorities can more effectively understand and monitor financial flows.
Empowering Government Agencies with the Right Tools
Levin called for government agencies to be equipped with the right tools and expertise to handle emerging challenges in the digital asset space. He emphasized the need for public institutions to understand smart contracts, decentralized finance (DeFi) systems, and the unique risks and opportunities they present.
“Agencies must be empowered to identify risks, leverage real-time blockchain data, and build tailored compliance regimes,” he said. “With the right mandates and public-private partnerships, we can create a financial infrastructure that benefits all participants.”
He added that cross-sector collaboration is essential to ensure both innovation and market integrity in this fast-evolving industry.
Blockchain’s Unique Advantage in Fighting Crime
One of the most compelling aspects of Levin’s testimony was his focus on how blockchain can help authorities act swiftly against illicit actors. He pointed to a successful operation involving crypto exchange OKX, stablecoin issuer Tether, and the U.S. Secret Service, in which $225 million in illicit crypto assets were frozen and seized.
“The traceability and programmability of these assets give law enforcement the ability to follow the money in real time,” Levin said. “This is a critical advantage when acting against criminal networks.”
He argued that rather than being a haven for illicit finance—as is often portrayed—blockchain’s open ledger can serve as a powerful deterrent and investigative tool.
A Call for Thoughtful, Informed Regulation
Throughout his remarks, Levin emphasized the importance of crafting a regulatory framework that supports both innovation and investor protection. He called on lawmakers to understand the nuances of different blockchain mechanisms and avoid applying outdated rules to modern digital systems.
“A one-size-fits-all approach won’t work,” he warned. “We need to assess each use case—whether centralized or decentralized—based on its specific transparency, risks, and operational model.”
Levin’s comments aligned with the broader goals of the Senate Banking Committee, which is currently reviewing proposals to bring clarity to the digital asset industry while safeguarding consumers and markets. In his opening statement, Committee Chairman Senator Tim Scott (R-S.C.) said the U.S. must provide a clear regulatory path to support innovation in blockchain while ensuring market safety and investor confidence.
Looking Ahead: Blockchain as Infrastructure
As the digital economy continues to grow, Levin concluded his testimony by reiterating that all forms of value—from currency to real estate—will eventually be transferred on blockchain platforms.
“The time to act is now,” he said. “If we build the right systems today, blockchain will serve as the backbone of a more transparent, inclusive, and secure financial future.”
With blockchain technology playing an increasingly critical role in the global economy, Levin’s message to lawmakers was clear: the U.S. has a unique opportunity to lead in digital finance—if it embraces the tools already available.
