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The cryptocurrency industry faces a growing need for regulations due to widespread illicit activities and money laundering concerns. Senator Elizabeth Warren’s Digital Asset Anti-Money Laundering Act has gained support from nine senators, raising questions about potential impacts on Bitcoin and institutional involvement in the crypto market. When and how did it get started?
In July 2023, Senator Warren reintroduced the Digital Asset Anti-Money Laundering Act, a piece of legislation aimed at addressing these concerns. The bill aimed to strengthen the regulatory framework around crypto assets, giving authorities more tools to fight financial crime involving digital assets.
Why Does it Matter?
In her argument, Warren said that currently there is a substantial gap in tax revenue related to cryptocurrencies, estimated at around $50 billion. According to her, any delay in updating the tax policies will cause the Internal Revenue Service and U.S. Treasury to miss out on approximately $1.5 billion in tax revenue for the 2024 financial year.
Nine Senators Joined the Cause
However, in a surprising alignment of forces, nine U.S. Senators have publicly expressed their support for Senator Warren’s Digital Asset Anti-Money Laundering Act. This bipartisan coalition includes Senators from the Democratic Party, such as Gary Peters, Dick Durbin, Tina Smith, Jeanne Shaheen, Bob Casey, Richard Blumenthal, Michael Bennet, and Catherine Cortez Masto. Additionally, independent Senator Angus King has joined the effort.
The support of these Senators demonstrates a unified decision to curb crypto challenges. The bill also enjoys backing from various groups, including the Bank Policy Institute, Transparency International U.S., Global Financial Integrity, the National District Attorneys Association, and many more.
A Bill with Comprehensive Measures?
The Digital Asset Anti-Money Laundering Act has some key measures to enhance cryptocurrency regulations. On a highly critical note, the bill proposes measures such as extending the Bank Secrecy Act to cover noncustodial digital wallets and establishing a compliance examination for Anti-Money Laundering and Combating the Financing of Terrorism.
On a broader scale, this backing may change the crypto game, and market enthusiasts see this as a positive sign. There are over 60+ assets that are under the SEC’s radar with unclear rules. Many have signed the motion against the agency as well.
Current Market Outlook
As of now, Bitcoin is up by 0.74%, trading at $26,646.14, reflecting a 0.43% increase in the last 24 hours. The market’s response indicates a cautiously optimistic stance in light of impending regulatory changes.