The United States Senate Passes Military Spending Bill with Anti-Money Laundering Provisions for Cryptocurrency
On Thursday, the U.S. Senate passed the 2024 National Defense Authorization Act (NDAA), a $886 billion military spending bill that includes provisions aimed at regulating the crypto industry. The amendment, spearheaded by senators Kirsten Gillibrand, Cynthia Lummis, Elizabeth Warren, and Roger Marshall, focuses on tightening oversight of financial institutions involved in crypto trading and cracking down on the use of anonymity-enhancing assets and crypto mixers.
Key Points:
– The amendment combines elements from two existing acts, the 2023 Lummis-Gillibrand Responsible Financial Innovation Act and the Digital Asset Anti-Money Laundering Act, to establish examination standards for crypto assets and ensure compliance with money laundering and sanctions laws.
– The Treasury Department will be required to conduct a study on countering anonymous crypto transactions, specifically targeting the use of mixers to obscure fund origins.
– The inclusion of crypto-related provisions in a military bill is not uncommon, and the senators highlight the importance of combating illicit finance within the crypto industry.
– The bill aims to address concerns related to national security, preventing the exploitation of crypto assets for evading sanctions or funding terrorist activities.
– The House has already passed its version of the NDAA, and negotiations between the two chambers will determine the final version of the bill.
Broader Regulatory Initiatives in Congress
In addition to the NDAA, other congressional committees are also taking steps to address regulatory challenges in the crypto industry. The House Agriculture Committee and the House Financial Services Committee have advanced bills to establish a federal regulatory framework for cryptocurrencies and set clear criteria for classifying crypto assets as securities or commodities. The outcome of these negotiations will shape the regulatory measures imposed on the crypto sector and its impact on financial institutions and traders.
Hot Take
The U.S. Senate’s passage of the military spending bill with anti-money laundering provisions for cryptocurrency marks a significant step towards regulating the crypto industry. By addressing concerns of illicit finance and national security, the amendment aims to establish oversight and compliance standards for crypto assets. The ongoing negotiations between the House and Senate will determine the final version of the bill and the extent of regulatory measures imposed on the crypto sector.
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