Binance didn't immediately respond to Benzinga's request for comment.

The letter, dated Oct. 26, 2023, also requested the Department of Justice (DOJ) to expedite its investigations into Tether's (CRYPTO: USDT) possible connections to illicit finance operations.

Tether responded with a statement, saying, "There is simply no evidence that Tether has violated Sanctions laws or the Bank Secrecy Act through inadequate customer due diligence or screening practices."

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The letter from the lawmakers highlights serious concerns about unregulated and centralized crypto asset intermediaries based outside the U.S.

They point out that these entities might have played a role in the financing of significant illicit activities, including alleged support for Hamas' attack on Israel.

While the representatives acknowledged the potential of crypto assets and distributed ledger technology in reshaping U.S. financial markets, they emphasized the importance of not branding all crypto-related entities with suspicion due to the actions of a few.

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