The bipartisan Digital Asset Anti-Money Laundering Act, spearheaded by Senators Elizabeth Warren (D-MA) and Roger Marshall (R-KS), has garnered momentum as nine new senators join the coalition in support.
The legislation aims to address the rising concerns over cryptocurrencies being used for illicit activities such as money laundering, drug trafficking, and evading sanctions.
In light of the increasing integration of digital assets into the financial landscape, the upcoming Benzinga's Future of Digital Assets conference on Nov. 14 will spotlight the implications of such legislative moves and their impact on the crypto industry.
Senators Joe Manchin (D-W.Va.), Lindsey Graham (R-S.C.), Gary Peters (D-Mich.), Dick Durbin (D-Ill.), Tina Smith (D-Minn.), Angus King (I-Maine), Jeanne Shaheen (D-N.H.), Bob Casey(D-Pa.), Richard Blumenthal (D-Conn.), Michael Bennet (D-Colo.), and Catherine Cortez Masto (D-Nev.) have all expressed their support for the bill.
They stress the importance of harmonizing the digital asset environment with the existing anti-money laundering and counter-terrorism financing (AML/CFT) regulations that oversee the wider financial sector.
Senator Warren highlighted the urgency of the situation, stating, “Crypto is enabling rogue nations, drug lords, ransomware gangs, and fraudsters to launder billions in stolen funds, evade sanctions, fund illegal weapons programs, and profit from devastating cyberattacks.”
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She further emphasized the readiness of Congress to take decisive action against these threats.
The bill proposes a series of measures to enhance the regulatory framework around cryptocurrencies.
These include extending the Bank Secrecy Act responsibilities to digital asset entities, addressing the issue of "unhosted" digital wallets, and strengthening enforcement of compliance.
Endorsements for the bill have come from various organizations, including the Bank Policy Institute, Massachusetts Bankers Association, and Transparency International U.S., among others.
The Bank Policy Institute commented on the importance of updating the existing anti-money laundering framework to account for digital assets.
With digital assets becoming an increasingly prominent feature in the financial landscape, the proposed legislation underscores the need for a robust regulatory framework to ensure the safety and integrity of the financial system.
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