A Group of Senators Led by Elizabeth Warren Aim for Strict US Crypto Restrictions
A group of senators, led by Elizabeth Warren (D-MA), is pushing for the strictest crypto restrictions ever seen in the US. Their goal is to cut the link between crime and digital currencies by making certain crypto transactions over $10,000 legally reportable. This effort is backed by a coalition of politicians from across the political spectrum.
Main Breakdown:
- Warren, along with Senators Roger Marshall (R-KS), Joe Manchin (D-WV), and Lindsey Graham (R-SC), has reintroduced the Digital Asset Anti-Money Laundering Act.
- If passed, the bill will require industry players engaging in transactions over $10,000 in digital assets through offshore accounts to file a Report of Foreign Bank and Financial Accounts (FBAR) with the IRS.
- The bill will designate wallet providers and validators as financial institutions, with reporting requirements for transactions over $10,000 and any activity resembling money laundering or tax evasion.
- The law will also impose greater responsibilities on owners and administrators of crypto ATMs, requiring regular submission of physical addresses and verification of customer and counterparty identity.
- The bill expands responsibilities to digital asset businesses, requiring identity verification and record-keeping for self-custody wallets, and strengthening compliance processes.
In a statement, Warren justified the bill by stating that crypto has become a preferred payment method for illicit activities. She believes the bill is the toughest proposal to crack down on crypto crime and provide regulators with the necessary tools to stop the flow of crypto to bad actors.
Hot Take:
While the proposed legislation aims to combat crypto-related crime, data from Chainalysis shows that such crime has actually decreased by 63% since the start of 2023. Despite this, Warren’s anti-crypto crusade is unlikely to wane any time soon.
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