Senator Elizabeth Warren (D-MA) has taken an significant move in the advancement of a bill that aims to crackdown on cryptocurrency by expanding the coalition of senatorial support for it.
The bill, known as the Digital Asset Anti-Money Laundering Act, was originally introduced in December 2022 by Warren and Sen. Roger Marshall (R-KS). It was reintroduced by Warren and Marshall in August 2023.
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If passed, the bill will expand the powers of the Bank Secrecy Act (BSA) to cover all facets of digital currency, making it a requirement to obtain the identification of your clients (known as “Know-Your-Customer requirements”). It would also force American citizens to file a Report of Foreign Bank and Financial Accounts (FBAR) with the Internal Revenue Service (IRS) if they make a transaction greater than $10,000 involving digital assets with a foreign bank account. Various other regulatory measures for crypto are outlined in the bill, mostly initiating greater transparency in crypto transactions.
JUST IN – U.S. Senator Warren introduces crypto "crack down" bill.https://t.co/HYnbragdTU
The bill is framed as a crime prevention initiative, as it claims crypto regulations will prevent black market uses of digital assets. It cites intelligence from the Treasury Department, the Department of Justice, the Federal Bureau of Investigation (FBI), and “other national security and law enforcement experts” that allegedly indicates digital assets like cryptocurrency are being used in criminal activities such as “money laundering, ransomware attacks, theft and fraud schemes, trafficking, terrorist financing, and other crimes.” The intelligence agencies also claim “rogue nations” like Iran, Russia, and North Korea have used crypto to “evade sanctions and fund illegal weapons programs.” A full text of the Senators’ one-pager on the bill is available below.
The ”expanded coalition” of bill co-sponsors includes Senators Raphael Warnock (D-GA), Laphonza Butler (D-CA), Chris Van Hollen (D-MD), all members of the Senate Banking, Housing, and Urban Affairs Committee, and Senators John Hickenlooper (D-CO) and Ben Ray Luján (D-NM).
Congress members that had already agreed to co-sponsor the act include Senators Joe Manchin (D-WV) Lindsey Graham (R-SC), Dick Durbin (D-IL), Richard Blumenthal (D-CT), Sheldon Whitehouse (D-RI), and John Fetterman (D-PA).
This bill has been officially endorsed by a series of major corporations and financial institutions, including: Bank Policy Institute, Massachusetts Bankers Association, Transparency International U.S., Global Financial Integrity, AARP, National Consumer Law Center, and National Consumers League. It also received endorsements from law enforcement bodies such as the National District Attorneys Association, Major County Sheriffs of America, and the Massachusetts Sheriffs’ Association.
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