U.S. Crypto Community Panic as Sen. Warren's Bill Gain Support
Senator Warren's bill gains more support to limit illegal crypto use, facing opposition from crypto advocates.
Senator Elizabeth Warren's bill, aimed at reducing crypto's role in illegal activities, is gaining more support in the Senate. The Digital Asset Anti-Money Laundering Act now has backing from five additional senators, including three from the Senate Banking Committee.
Senator Warren expressed her satisfaction, noting the bill's bipartisan nature and its focus on tackling illicit crypto use. The bill also receives support from various organizations like the Bank Policy Institute and Transparency International US.
The bill's goal is to limit crypto's use in illegal activities such as money laundering and drug trafficking by increasing government monitoring or oversight. However, crypto supporters argue that the bill threatens the essence of crypto, not just its illegal usage.
Key proposals of the bill include applying the Bank Secrecy Act's Know-Your-Customer rules to various crypto entities. Alex Horn from Galaxy, an asset management firm, suggests that this could effectively outlaw crypto in America.
Additionally, the bill aims to extend these rules to digital assets held in foreign accounts. It also requires digital asset ATM operators to provide their physical locations and verify identities, enhancing regulatory compliance.
