US Senator Elizabeth Warren Co-sponsors Digital Asset Anti-Money Laundering Act
In Brief
Elizabeth Warren co-sponsored the ‘Digital Asset Anti-Money Laundering Act’ to mitigate money laundering and terrorism funding practices.
Five United States senators, including Elizabeth Warren — a Democrat from Massachusetts, have co-sponsored the “Digital Asset Anti-Money Laundering Act.” The legislation aims to extend the requirements of the Bank Secrecy Act, including Know Your Customer (KYC) rules to miners, verifiers, noncustodial wallet providers and others.
In the announcement, Senator Warren shared that Senators Raphael Warnock, Laphonza Butler, Chris Van Hollen, John Hickenlooper, and Ben Ray Luján have supported the Digital Asset Anti-Money Laundering Act. The objective of the legislation is to align the digital asset ecosystem with anti-money laundering and counter-financing of terrorism frameworks, addressing potential loopholes.
The bill has garnered bipartisan support from several senators and organizations, including the Bank Policy Institute, Massachusetts Bankers Association, Transparency International U.S., Global Financial Integrity, National District Attorneys Association, Major County Sheriffs of America, the National Consumer Law Center and the National Consumers League.
Introduced in 2022, the Digital Asset Anti-Money Laundering Act is a seven-page bill that aims to expand the classification of a money service business (MSB), prohibit financial institutions from utilizing technologies such as digital asset mixers and regulate digital asset ATMs.
US Acts Against Money Laundering and Terrorism Funding
In recent times, the US government has been focusnig on issues related to money laundering and terrorist funding facilitated through the use of cryptocurrencies.
Earlier this year, the United States Senate approved the National Defense Authorization Act (NDAA), which featured crypto-related amendments including elements from the Digital Asset Anti-Money Laundering Act and the Responsible Financial Innovation Act, which seeks to set up precautions to prevent incidents such as the FTX case in the industry.
It was proposed by a team of senators, including Cynthia Lummis, Elizabeth Warren, Kirsten Gillibrand and Roger Marshall.
In a more recent development, Senators Mitt Romney, Mark Warner, Mike Rounds and Jack Reed introduced the Terrorism Financing Prevention Act.
This proposed bill seeks to expand US sanctions to include parties funding terrorist organizations with cryptocurrency or fiat. The legislation empowers the US Treasury Department to address emerging threats involving digital assets.
The senators’ proposed bill emerged amidst heightened concerns among US lawmakers regarding the alleged role of cryptocurrencies in funding terrorist groups.
With Elizabeth Warren taking a leading role in co-sponsoring the Digital Asset Anti-Money Laundering Act, aimed at fortifying regulations and addressing potential loopholes within the digital asset ecosystem, developments in US cryptocurrency regulations highlight an inclination toward establishing more oversight over digital assets.
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Alisa is a reporter for the Metaverse Post. She focuses on investments, AI, metaverse, and everything related to Web3. Alisa has a degree in Business of Art and expertise in Art & Tech. She has developed her passion for journalism through writing for VCs, notable crypto projects, and scientific writing. You can contact her at alisa@mpost.io
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Alisa is a reporter for the Metaverse Post. She focuses on investments, AI, metaverse, and everything related to Web3. Alisa has a degree in Business of Art and expertise in Art & Tech. She has developed her passion for journalism through writing for VCs, notable crypto projects, and scientific writing. You can contact her at alisa@mpost.io
