The US anticrypto lawmaker Elizabeth Warren lauded the additional support from fellow senators to her proposed Digital Asset Anti-money Laundering bill. The vocal critic of digital assets confirmed securing nine additional senators in her efforts to address the perceived money laundering risks by cryptocurrencies.
Through a Friday, September 15 press release, Warren indicated the addition of Democratic senators Tina Smith, Bob Casey, Michael Bennet, and Dick Durbin’s support. The post captured via her official website listed Senator Gary Peters, Jeanne Shaheen, and Catherine Masto joining independent lawmaker Angus King in supporting the anti-money laundering bill.
US Senators Target Crackdown on Crypto Illicit Usage
Senator Warren alleged that cryptocurrencies facilitate rogue nations, fraudsters, and drug lords to move illicit finance into the conventional financial system. She observed that ransomware gangs have joined the party to launder the stolen funds and circumvent sanctions.
The Massachusetts senator laments that crypto has become the conduit for funding illegal weapons initiatives. The anonymity allows criminals to profit from the devastating cyberattacks.
Warren considers the Digital Asset Anti-Money Laundering (DAAML) Act harboring the toughest initiative to crack down on the illicit utilization of crypto. Enacting the act would equip the regulators with the tools to fight crypto usage in dark-world activities. She added that the expanding support base signals the readiness of the US Congress to take action against crypto-related money laundering.
The additional support offered by Democratic senators is timely for the bill introduced in December 2022. A review of the journey reveals the bill’s resubmission in August 2023, supported by Senators Lindsey Graham and Roger Marshall. The duo affirmed that the bill targets sealing regulatory loopholes currently exploited by criminals by delivering the entire digital asset ecosystem into compliance.
Warren is optimistic that passing the proposed bill will extend the scope of the regulatory framework in use within traditional financial institutions to digital assets firms. As such, the bill will subject all cryptocurrency firms to mandatory anti-money laundering (AML) and know-your-customer (KYC) requirements as stipulated within the Bank Secrecy Act (BSA). The bill will bring digital asset mining firms, validators, and wallet providers to comply with the BSA provisions.
Warren Legislative Proposal Targets Compliance from Noncustodial Wallets
The legislative proposal resubmitted last month stipulates stern action against the noncustodial crypto wallets identified as unhosted. The bill identifies noncustodial platforms as hardware and software facilitating the storing of private and public keys.
The bill identifies the keys as helping digital signing and securing digital assets transactions. By doing so, the store value is secured as wallet owner property who can exercise independent control.
The legislative proposal by Warren targets money service providers and banks to verify customer identities alongside counterparty details strictly. The bill obligates records keeping and regular filing of reports during instances of crypto-based transactions that feature unhosted wallets.
Warren Targets Transparency and Legality in Cryptocurrency-Related Transactions
The filing is necessary when the hosting of the transacting wallet occurs in jurisdictions labeled as BSA non-compliant. The bill directs US residents with crypto holdings exceeding $10,000 in foreign accounts to submit reports.
Senator Graham declared support for the DAAML Act, given that it offers a comprehensive solution to using cryptocurrencies to move illicit funds. He laments the present regulatory loopholes allowing drug cartels, terrorist groups, and criminal gangs to move illicit funds freely.
Senator Graham considers the legislative proposal as the catalyst for guaranteeing transparency and oversight in the crypto industry following repeated cases of facilitating criminal activity. The lawmaker indicates that the existing legality and transparency stipulated for the dollar should similarly apply to the crypto.
Warren’s proposed bill captures the pronouncements that have made her the vocal critic of digital assets. In a New York Times publication, she suggested that crypto investors aided the collapse of the Silicon Valley Bank (SVB).
The resubmitted bill seeks to stimulate transparency in crypto-related transactions. Earlier this year, the Massachusetts senator complained that ransomware gangs choose crypto as their illicit finance tool.
Leaving the crypto industry unchecked would allow rogue nations and fentanyl traffickers leeway to profit from their dark activities. Also, the bill would resolve the rampant noncompliance exhibited by many actors who breach even the basic anti-money laundering provisions.
Editorial credit: Matt Smith Photographer / Shutterstock.com
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