Senator Warren Gains Support for Digital Asset Anti-Money Laundering Act
Senator Elizabeth Warren has announced an increase in support for the bipartisan Digital Asset Anti-Money Laundering Act, which aims to address concerns surrounding the use of cryptocurrency in illegal activities like money laundering and drug trafficking.
The legislation has gained backing from five additional senators, including Senators Raphael Warnock, Laphonza Butler, and Chris Van Hollen, all members of the Senate Banking, Housing, and Urban Affairs Committee.
The proposed bill seeks to reduce risks associated with crypto by closing loopholes and bringing the digital asset ecosystem into greater compliance with established anti-money laundering and counter-terrorism financing frameworks.
Senator Warren emphasized the urgency of this legislation, citing the Treasury Department’s concerns about crypto’s role in facilitating illicit activities.
Senator Warren has consistently advocated for stricter regulations on crypto and highlighted their use in funding terrorist groups and criminal enterprises.
Expansion of the Bank Secrecy Act
The Digital Asset Anti-Money Laundering Act aims to expand the responsibilities outlined in the Bank Secrecy Act to participants in the digital asset space, including wallet providers, miners, and network validators.
It specifically addresses challenges related to “unhosted” digital wallets and aims to strengthen enforcement of compliance with anti-money laundering standards.
“Unhosted” wallets are commonly known as “wallets” or “non-custodial wallets” in crypto circles.
Senator Warren’s proposal has faced criticism from members of the crypto community who argue that it is unfair to classify individuals running a Bitcoin node at home as a “money services business.”
Hot Take: Senator Warren Continues Push for Stricter Crypto Regulations
Senator Elizabeth Warren’s efforts to combat crypto money laundering have gained momentum with increased support for the Digital Asset Anti-Money Laundering Act. The proposed legislation aims to close loopholes and bring the digital asset ecosystem into compliance with anti-money laundering frameworks. Senator Warren emphasizes the urgency of this bill, citing concerns from the Treasury Department about crypto’s role in facilitating illicit activities.
While Senator Warren’s proposal has gained support, it has also faced criticism from members of the crypto community who argue that it unfairly classifies individuals running Bitcoin nodes at home as “money services businesses.” Despite opposition, Senator Warren remains a strong advocate for stricter regulations on crypto.
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