U.S. Senator Elizabeth Warren, D-Mass., has rallied additional support for her bipartisan Digital Asset Anti-Money Laundering Bill, aimed at curbing the alleged use of cryptocurrency in illicit finance. On December 11, Warren announced the expansion of the Senate coalition backing the bill, which seeks to extend the Bank Secrecy Act’s requirements, including Know Your Customer (KYC) rules, to various players in the crypto ecosystem, such as miners, validators, and wallet providers.
Senators Join the Fight Against Illicit Crypto Use
In a press release, Senator Warren unveiled five new cosponsors, including Senators Raphael Warnock (D-Ga.), Laphonza Butler (D-Calif.), and Chris Van Hollen (D-Md.), all members of the Senate Banking, Housing, and Urban Affairs Committee. Senators John Hickenlooper (D-Colo.) and Ben Ray Luján (D-N.M.) also joined the cause. The bill addresses various issues, including money laundering, ransomware attacks, sanctions evasion, drug trafficking, elder fraud, and other illicit financial activities involving cryptocurrencies.
Senator Warren, a vocal advocate for stringent digital currency regulation, emphasized the need for new laws to combat the use of crypto in supporting terrorism, aiding rogue nations, funding drug trafficking, and facilitating cybercrime.
The legislation has received endorsements from various entities, including the Bank Policy Institute, Massachusetts Bankers Association, Transparency International U.S., and the National District Attorneys Association. The bill addresses concerns raised by the Treasury Department, the Department of Justice, and national security experts regarding the increasing use of digital assets in criminal activities.
The proposed Digital Asset Anti-Money Laundering Act outlines specific measures, such as extending Bank Secrecy Act responsibilities to digital asset wallet providers, miners, and validators. It also directs regulatory bodies to establish compliance examination and review processes for entities dealing with digital assets. The bill aims to bring transparency and safeguards to the cryptocurrency industry, aligning it with the standards applied to traditional financial institutions.
Senator Warren has been a vocal advocate for stringent regulation of cryptocurrencies, citing their potential involvement in funding terrorism, illegal weapons programs, and cyberattacks. The bill aligns with her consistent push for crypto oversight, as demonstrated by her participation in bipartisan efforts and hearings from 2021 to throughout the 2023. However, the legislation is positioned as a comprehensive solution to address the growing challenges posed by the use of cryptocurrency in illicit financial activities.
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