Elizabeth Warren’s Bill to Crack Down on Crypto’s Use in Illicit Finance Gains More Support
U.S. Senator Elizabeth Warren (D-MA) has announced that her digital asset anti-money laundering bill has gained additional support from lawmakers. Senators Raphael Warnock (D-GA), Laphonza Butler (D-CA), Chris Van Hollen (D-MD), John Hickenlooper (D-CO), and Ben Ray Luján (D-NM) have joined as cosponsors.
The Purpose of the Bill
The bill aims to address the risks of illicit finance associated with cryptocurrencies. It seeks to close loopholes and bring the digital asset ecosystem into compliance with anti-money laundering and countering the financing of terrorism (AMF/CFT) frameworks.
Critics of the Bill
Some in the crypto community argue that this bill threatens individual freedom and privacy. They claim it is the most direct attack on crypto users.
Bill Cosponsors and Supporters
In addition to Senator Warren, the bill has cosponsors including Senators Roger Marshall (R-KS), Joe Manchin (D-WV), and Lindsey Graham (R-SC). It is also supported by various organizations such as the Bank Policy Institute and AARP.
Treasury Department’s Statement
According to Senator Warren, the Treasury Department has highlighted the need for new laws to crack down on the use of crypto in illicit activities.
The Bill’s Provisions
The bill extends the Bank Secrecy Act (BSA) responsibilities to digital asset wallet providers, miners, and other network participants. It also addresses the issue of unhosted digital wallets and strengthens enforcement of BSA compliance.
Criticism of Crypto’s Illicit Use
Senator Van Hollen emphasizes the need for transparency rules for crypto, stating that it can be used by terrorist organizations, drug cartels, and authoritarian regimes to fund illicit activities. However, the actual percentage of illicit transactions in the crypto space is very low compared to traditional banking and cash.
Hot Take: Elizabeth Warren’s Bill Sees Increasing Support in Fight Against Crypto’s Illicit Use
Elizabeth Warren’s bill to address the risks of illicit finance associated with cryptocurrencies has gained more support among lawmakers. The bill aims to bring crypto into compliance with anti-money laundering frameworks and close existing loopholes. While there are critics who argue that the bill threatens personal freedom and privacy, it has garnered support from various cosponsors and organizations. The Treasury Department has also emphasized the need for new legislation to crack down on the exploitation of crypto for illicit purposes. By extending BSA responsibilities and addressing unhosted wallets, the bill aims to strengthen enforcement and increase transparency in the digital asset space. However, the actual percentage of illicit crypto transactions remains low compared to other financial channels.
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