Bank Policy Institute (BPI) Supports Elizabeth Warren’s Crypto Regulation Bill
Well-known crypto critic, Senator Elizabeth Warren, has surprisingly gained support from the Bank Policy Institute (BPI) for her newly introduced bipartisan legislation aimed at regulating the crypto industry and eliminating loopholes for illicit activity. Here are the key points:
– BPI’s support for Warren’s bill is unexpected, as the Senator and Wall Street banks have rarely been in agreement before.
– The legislation calls for more stringent anti-money laundering rules and counter-terrorism financing measures specifically for the crypto sector.
– BPI argues that the existing anti-money laundering structure in the US does not cover digital assets.
– The bill extends Bank Secrecy Act (BSA) responsibilities to crypto wallet providers, miners, validators, and other network participants.
– It addresses the issue of “unhosted” digital wallets that allow users to bypass AML and sanction checks.
The bill has also received endorsements from various organizations, including the Massachusetts Bankers Association and AARP. It seeks to strengthen BSA compliance enforcement, extend BSA rules regarding reporting of foreign bank accounts to include digital assets, and grant FinCEN oversight on illicit financial risks of digital assets ATMs.
Hot Take: A Surprising Alliance for Crypto Regulation
The support of the Bank Policy Institute (BPI) for Senator Elizabeth Warren’s crypto regulation bill is a significant development. It brings together unlikely allies and highlights the growing recognition of the need for stricter rules in the crypto industry. The bill’s focus on anti-money laundering measures and addressing the gaps in AML coverage for digital assets is crucial for combating illicit activities. As the crypto industry continues to evolve, regulatory efforts like this will be essential for building trust and ensuring the integrity of the financial system.