The US authorities have proposed a bipartisan Digital Asset Anti-Money Laundering Act in response to the growing threat posed by the crypto industry to financial stability. The Act has gained support from a coalition of senators, including Elizabeth Warren, who expressed excitement about the new senators joining the fight against the illicit use of crypto. The bill aims to crack down on the use of crypto for financing terrorism, ransomware operations, and evading sanctions.
The proposed legislation would require Know-Your-Customer (KYC) verification for wallets, wallet providers, miners, and other crypto entities. Senator John Hickenlooper emphasized the need to apply the same laws governing traditional banks to the crypto industry to ensure user protection and transparent innovation. The bill also aims to address issues with “unhosted” digital wallets and strengthen the enforcement of compliance with the Bank Secrecy Act.
Senator Ben Ray Luján highlighted the lack of oversight in the crypto industry, leaving consumers vulnerable and enabling bad actors to finance terrorism and drug trafficking. The bipartisan legislation seeks to establish safeguards and strong standards to protect Americans from criminal activity associated with unregulated crypto use.
The bill has garnered support from various organizations, including The Bank Policy Institute, Transparency International U.S., and AARP. Elizabeth Warren has been a vocal advocate for legislation that addresses the risks posed by the crypto industry, citing instances of crypto being used to evade sanctions and fund illegal activities.
While some believe that the bill could bring much-needed regulation to the crypto world, others argue that it may undermine the original idea of privacy that attracts users to cryptocurrencies.
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| Information | Details |
|---|---|
| Geography | North America |
| Countries | 🇺🇸 |
| Sentiment | positive |
| Relevance Score | 1 |
| People | Chris Van Hollen, John Hickenlooper, Laphonza Butler, Elizabeth Warren, Raphael Warnock |
| Companies | The Bank Policy Institute, Global Financial Integrity, National District Attorneys Association, Massachusetts Bankers Association, Transparency International U.S. |
| Currencies | None |
| Securities | None |
