I hope you are all well and had an excellent week, welcome to CryptoGod-1’s blog on all things crypto. After her recent BOLD Claim on North Korea using cryptocurrency to fund their nuclear arms program, Senator Liz Warren is back in the focus with her bipartisan Digital Asset Anti-Money Laundering Act gaining increased support.
Bipartisan Digital Asset Anti-Money Laundering Act
On December 11th, 2023, Senator Elizabeth Warren announced an increase in support for the bipartisan Digital Asset Anti-Money Laundering Act, as five new senators joined as co-sponsors of the bill. Three of them are members of the banking committee and they are backing the bill which aims to tackle concerns around the use of crypto in illegal activities such as money laundering and drug trafficking.
Included within the additional senators backing the bill are Senators Raphael Warnock (D-Ga.), Laphonza Butler (D-Calif.), and Chris Van Hollen (D-Md.), all members of the Senate Banking, Housing, and Urban Affairs Committee. They join existing co-sponsors of the bill, such as Senators Roger Marshall (R-Kan.), Joe Manchin (D-W.Va.) Lindsey Graham (R-S.C.), Gary Peters (D-Mich.), Chair of the Senate Homeland Security and Governmental Affairs Committee and John Fetterman (D-Pa.).
The proposed bill will aim to reduce risks that Warren claims are associated with crypto through “closing loopholes” and “bringing the digital asset ecosystem into greater compliance” with established anti-money laundering and counter-terrorism financing frameworks. As part of her announcement, Senator Warren stressed how urgent she feels this legislation is and cited the Treasury Department’s apprehensions about the role of crypto in facilitating various illicit activities. She stated:
“I’m glad that five new senators are joining the fight to take action, including three members of the Banking Committee – our bipartisan bill is the toughest proposal on the table cracking down on crypto’s illicit use and giving regulators more tools in their toolbox.”
Senator Warren has always been known as a harsh critic of cryptocurrencies, and she has consistently advocated for stricter regulations. She often highlights the use of cryptocurrencies in funding “terrorist groups, rogue nations, drug lords, ransomware gangs, and fraudsters” and other illicit activities
Senator Van Hollen, a supporter of Warrens legislation, emphasized the need to subject entities in the crypto sector to the same transparency rules as traditional banks. Senator Lujan noted:
“Cryptocurrencies operate with little to no oversight. This leaves consumers vulnerable, and creates new ways for bad actors to finance terrorism and drug trafficking. I’m proud to join my colleagues in this effort to protect people from the criminal activity that unregulated crypto use has enabled. This bipartisan legislation will establish safeguards to ensure crypto use is met with strong standards to keep Americans safe.”
Bank Secrecy Act 2.0?
The Digital Asset Anti-Money Laundering Act will look to expand on the responsibilities outlined in the Bank Secrecy Act. This will apply to various participants in the digital asset space, including wallet providers, miners, and network validators (also known as node operators).
The bill specifically addresses challenges related to “unhosted” digital wallets, and will aim to strengthen the enforcement of compliance with anti-money laundering standards. These “unhosted” wallets she speaks of are the common everyday wallets used by individuals and organisations on a daily basis, simply known as “wallets” or “non-custodial wallets.”
If the bill passed, it would:
Extend Bank Secrecy Act (BSA) responsibilities, including know-your-customer (KYC) requirements
Address a major gap concerning “unhosted” digital wallets
Direct FinCEN to guide financial institutions
Strengthen enforcement of BSA compliance by the Treasury Department
Extend BSA rules regarding reporting of foreign bank accounts to include digital assets
Mitigate the illicit finance risks of digital asset ATMs
Many within the crypto community have shown their disdain towards the bill, with strong criticism often the recourse. Head of Policy at Bitcoin Policy UK, Freddie New, went to social media to show his frustrations in a quite comical and amusing post. He noted how his kids who run a Bitcoin node at home should now be classified as a “money services business.”
The highlight and my personal favourite part of his tweet was:
"Remember, if you got enough support, you could pass a law banning gravity. But people would still fall downstairs."
We shall see what happens next but it is clear there is opposition to the devilish plans of Senator Elizabeth Warren.
Have a great day.
CryptoGod-1.
Referral Links and Follow Me:
