Elizabeth Warren Gains Support for Crypto Crackdown Bill
U.S. Sen. Elizabeth Warren, D-Mass., has received additional support from fellow senators for her proposed bill aimed at curbing the use of cryptocurrency in illicit finance. The “Digital Asset Anti-Money Laundering Act” has now gained five co-sponsors. This bill, which has faced criticism from the crypto industry, seeks to expand Bank Secrecy Act requirements to miners, validators, wallet providers, and others by implementing know-your-customer rules.
New Co-Sponsors and their Influence
Three of the newly added co-sponsors, Sens. Raphael Warnock, Laphonza Butler, and Chris Van Hollen, sit on the Senate Banking Committee alongside Warren. This committee holds significant power in shaping future crypto legislation. Additionally, Sens. John Hickenlooper and Ben Ray Luján have also joined as co-sponsors.
Addressing Risks and Ensuring Transparency
Sen. Van Hollen highlighted the risks posed by the lack of legal safeguards surrounding cryptocurrencies and emphasized the need for transparency rules similar to traditional banks. He stated that crypto is being used by terrorist organizations, drug cartels, and authoritarian regimes to fund illicit activities.
Focusing on AML
The issue of anti-money laundering (AML) involving cryptocurrency has been a major concern for lawmakers and the Biden Administration. Warren has been advocating for her bill during congressional hearings, while the Treasury Department has requested more authority to combat illicit actors in the digital asset industry.
Potential Compromise in Congress
Patrick McHenry, a member of the House Financial Services Committee, suggested that it is time for the House to examine AML rules for crypto. He believes there may be room for compromise between the House and Senate on this issue. McHenry has played a key role in advancing crypto legislation but recently announced that he will not seek re-election.
Hot Take: Increasing Pressure for Crypto Regulation
With the growing support for Elizabeth Warren’s bill and the focus on AML in both chambers of Congress, it is evident that there is increasing pressure to regulate the cryptocurrency industry. Lawmakers are concerned about the risks associated with crypto and its potential use in illicit activities. As discussions continue, it remains to be seen how comprehensive and impactful future regulations will be.
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