Senator Elizabeth Warren's Anti-Crypto Bill Gains Momentum

Senator Elizabeth Warren's bill to crack down on crypto's involvement in illicit activities continues to garner support in the Senate.

The Digital Asset Anti-Money Laundering Act has gained support from five new senators, including three members of the Senate Banking Committee.

"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,” Warren said in a press release. 

The bipartisan bill also has endorsements from organizations including the Bank Policy Institute, Massachusetts Bankers Association, Transparency International US, and Global Financial Integrity.

The bill aims to curb crypto use in money laundering, drug trafficking, and sanctions evasion by increasing regulatory oversight on the industry. But crypto advocates argue that its proposals undermine crypto itself, not just illegal use of it.

Outlaw Crypto

The bill proposes extending Bank Secrecy Act's Know-Your-Customer requirements to digital asset wallet providers, including non-custodial wallets, miners, validators, and other network participants engaging in digital asset transactions.

"As non-custodial and decentralized software cannot plausibly perform centralized compliance functions, warren’s bill would effectively outlaw crypto in America," said Alex Horn, head of research at asset management firm Galaxy

The bill also proposes extending BSA rules for foreign bank accounts to include digital assets and says FinCEN would ensure that digital asset ATM owners and administrators submit and update the physical addresses of their kiosks and verify customer and counterparty identities.