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Senator Elizabeth Warren’s bipartisan crypto anti-money laundering bill has gained backing from 9 more senators, including notable committee chairs.
According to the press release on Warren’s official webpage on Sept. 15, the bill has won the support of key political figures such as the chair of homeland security, Gary Peters, and judiciary chair, Dick Durbin, alongside senators Tina Smith, Angus King, Michael Bennet, Bob Casey, Catherine Cortez Masto, Jeanne Shaheen, and Richard Blumenthal.
This development takes the total count of senators backing the bill to twelve, with senator Roger Marshall leading as the co-sponsor. Senators Joe Manchin and Lindsey Graham are also among the lawmakers supporting this initiative.
Warren expressed her gratitude towards the growing group of supporters, noting:
“The increasing support indicates that the Congress is prepared to act. Our cross-party bill is currently the sternest proposal, aiming to curb the unlawful use of cryptocurrencies and equipping regulators with additional resources.”
Senator Elizabeth Warren
The proposed Digital Asset Anti-Money Laundering Act intends to bolster regulatory supervision in the burgeoning industry. It plans to address the existing gaps and bring the digital asset sector more in line with the prevalent anti-money laundering and counter-financing of terrorism frameworks that oversee the wider financial system.
A document released by the lawmakers underscored the notable increase in unlawful digital asset transactions, which amounted to $20 billion recently. Alarmingly, 44% of these transactions were associated with entities facing sanctions in the last year.
To counter this, senator Warren and her colleagues propose to broaden the Bank Secrecy Act’s scope. They aim to introduce know-your-customer requirements for digital asset wallet providers, miners, and other entities in the cryptocurrency networks.
Senator Manchin stressed that this legislation aims to reduce the security risks tied to cryptocurrency platforms, urging them to comply with the same regulations as conventional banks.
This legislative move has received backing from several organizations, including Transparency International U.S., Global Financial Integrity, and the National District Attorneys Association.
However, it’s worth noting that senator Warren has consistently advocated for stricter crypto regulations.
She has previously labeled cryptocurrencies as the preferred method for sanctioned countries like Iraq and Russia. Furthermore, she has voiced concerns over a potential “$50 billion crypto tax gap,” warning that the IRS and Treasury could lose approximately $1.5 billion in tax revenues for the 2024 fiscal year if policy updates are postponed.
Moreover, during her re-election campaign in March, she proposed the creation of a group to counter the crypto industry in the U.S.