More colleagues are endorsing U.S. Sen. Elizabeth Warren, D-Mass., to sponsor a bill that would take action against the purported use of cryptocurrencies in illegal finance.
Warren, a frequent critic of the cryptocurrency sector, announced on Monday that five other senators had joined her in co-sponsoring the “Digital Asset Anti-Money Laundering Act.” The bill, which has drawn criticism from the cryptocurrency community, intends to expand the scope of the Bank Secrecy Act’s know-your-customer regulations to include wallet providers, miners, validators, and others.
Sens. Chris Van Hollen, D-Md., Laphonza Butler, D-Calif., and Raphael Warnock, D-Ga., are three of the five new additions to the Senate Banking Committee, along with Warren. The cryptocurrency laws that are passed over the course of the upcoming year may be greatly influenced by that committee.
Senators Ben Ray and John Hickenlooper of Colorado On Monday, Luján, D-N.M., became a co-sponsor of the bill.
The absence of fundamental legal protections for cryptocurrencies exposes Americans to a myriad of hazards. Furthermore, terrorist groups, drug cartels, and authoritarian governments now prefer to pay with cryptocurrency in order to finance their illegal operations, according to a statement released by Van Hollen. “Crypto should be governed by the same transparency rules as traditional banks to protect Americans and help ensure it isn’t used to facilitate illegal behavior by criminal enterprises and rogue nations.”
Cryptocurrency-related anti-money laundering and counterterrorism financing initiatives have garnered significant attention from both lawmakers and the Biden Administration. In congressional hearings, Warren has made a strong case for her bill, particularly in the last few months. Last month, the Treasury Department requested additional powers from Congress to pursue criminal activity in the digital asset market.
AML House Financial Services Committee is being watched In Punchbowl News’ Monday newsletter, Patrick McHenry, R-N.C., stated that the House ought to examine crypto-related anti-money laundering regulations, implying that a compromise between the House and Senate might be possible.
Last week, McHenry declared he would not run for office again when his current term expires in January 2025. He’s been regarded as a pioneer in the advancement of cryptocurrency legislation, having introduced both a bill that would fully overhaul the market structure of cryptocurrencies and a bill that would regulate stablecoins at the federal level. The Senate would have to approve both measures.