Crypto-hating Senator Elizabeth Warren has seen her Digital Asset Anti-Money Laundering Act get support from nine colleagues as she attempts to address risks associated with cryptocurrencies.
A statement shared on her official website (warren.senate.gov) indicated that Democratic Senators Tina Smith, Dick Durbin, Gary Peter, Richard Blumenthal, Bob Casey, Catherine Masto, Jeanne Shaheen, and Michael Bennet, along with independent lawmaker Angus King had expressed their support to Warren’s bill.
In the statement, Warren claimed that cryptocurrencies were enabling drug lords, fraudsters, and ransomware gangs to launder stolen money, fund the acquisition of illegal weapons, and evade sanctions.
The Senator described her proposal as the solution to the illicit use of digital assets. She added that, if approved, the Act will give United States regulators more tools to go after bad actors in the crypto space.
Warren first submitted the Digital Asset Anti-Money Laundering bill last December. She then re-submitted it last month with the help of Senators Lindsey Graham, Joe Manchin, and Roger Marshall. The lawmakers aim to cover the existing regulatory loopholes as well as push for compliance.
Crypto Firms Set to Adhere to AML and KYC Rules if Warren Proposal Passes
If the proposal is passed, the regulatory framework applied to firms in traditional finance will be adopted in crypto. That means digital asset players like validators, miners, and wallet providers will be required to adhere to the Anti-Money Laundering and Know-Your-Customers policies stated in the Bank Secrecy Act.
Further, Warren’s bill will require any American holding $10,000 or more in digital currencies in an account outside the United States to submit a report. According to the Senator, this mandatory requirement will bring transparency to an industry that she claims has been facilitating criminal activities.
Senator Warren has been a huge critic of digital assets. In March 2023, she accused crypto investors of having a hand in the downfall of Silicon Valley Bank. She is also among the lawmakers who have been calling for a crypto mining ban in the US, claiming that Bitcoin mining was polluting the environment.
In June, Warren alleged that crypto was facilitating the fentanyl trade and knew a criminal group that sold fentanyl pills worth $540 billion and then received payments in crypto.
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