Bill Proposals for Crypto Regulation
Recent news on the Digital Asset Anti-Money Laundering Act of 2022, proposed by Senator Elizabeth Warren, aims to introduce strict banking regulations on crypto technology in the U.S. It has received significant backing and participation from top banking institutions and industry groups.
Proposed Provisions
The bill requires specific federal agencies to develop regulations affecting digital assets, requiring the Financial Crimes Enforcement Network (FinCEN) to classify digital asset wallet providers, cryptocurrency miners, validators, and similar entities as money service businesses. It obliges citizens to report any cryptocurrency transactions over $10,000 in foreign accounts.
The Department of the Treasury is directed to prevent financial institutions from transacting with digital asset mixers, privacy coins, and other technologies that enhance anonymity.
Legislative Influence
U.S. Senators Roger Marshall and Elizabeth Warren collaborated with prominent banks, seeking support from the American Bankers Association (ABA) to help craft the bill. Additionally, Senator Warren’s meeting with JPMorgan CEO Jamie Dimon reinforces the banking industry’s influence on the legislation.
Crypto Community Response
The crypto community reacted strongly to these findings. Coinbase CEO Brian Armstrong criticized Senators Warren and Marshall for aligning with the banks. He cautioned the political repercussions, citing reasons including the large number of U.S. citizens holding crypto, young people’s belief in crypto’s economic potential, and the growing support for the Stand With Crypto Alliance.
Legislative Support
The bill gained momentum with five additional senators, including three Banking Committee members, co-sponsoring it, and the Bank Policy Institute endorsing the legislation.
Hot Take
The Digital Asset Anti-Money Laundering Act of 2022, supported by banking institutions, aims to implement strict regulations on crypto in the U.S. However, collaborating with banks and potential political implications highlight the controversy and challenges surrounding crypto legislation.
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