U.S. Senate Passes NDAA with Provision Targeting Crypto Mixers and Anonymity-Enhancing Assets

The U.S. Senate passes NDAA amendment targeting crypto mixers and anonymity-enhancing assets

The U.S. Senate has passed the 2024 National Defense Authorization Act (NDAA), which includes a provision that tightens oversight over financial institutions engaged in crypto trading and takes aim at crypto mixers and “anonymity-enhancing” crypto assets. The amendment represents significant congressional action in relation to crypto assets and was brought forward by a bipartisan group of Senators, including Kirsten Gillibrand, Cynthia Lummis, Elizabeth Warren, and Roger Marshall. The amendment combines provisions from previous acts and requires the establishment of examination standards for crypto assets to assess risk and ensure compliance with money laundering and sanctions laws. The Treasury Department is also required to conduct a study on combating anonymous crypto asset transactions. The aim is to crack down on illicit finance and prevent the use of crypto assets for evading sanctions and funding terrorism.

Key Points:

NDAA amendment tightens oversight over financial institutions engaged in crypto trading
Targets crypto mixers and anonymity-enhancing crypto assets
Brought forward by a bipartisan group of Senators
Requires examination standards for crypto assets to assess risk and ensure compliance
Treasury Department to conduct a study on combating anonymous crypto asset transactions

The House has already passed its version of the NDAA, and both chambers will now negotiate on a version that can pass. Additionally, the House Agriculture Committee has advanced the Financial Innovation Technology for the 21st Century Act, which aims to create a federal regulatory framework for crypto in the U.S.

Hot Take:

The passage of the NDAA amendment demonstrates the increasing focus on regulating the crypto industry to prevent illicit activities. By targeting crypto mixers and anonymity-enhancing assets, lawmakers aim to ensure greater transparency and compliance with financial regulations. This move could have significant implications for the future of crypto trading and the use of crypto assets in illicit activities.