Senator Elizabeth Warren (D-Mass.) on Monday announced additional support from her colleagues for the bipartisan Digital Asset Anti-Money Laundering Act.
This bill aims to address the growing concerns around the use of cryptocurrencies in money laundering, drug trafficking, and other illegal activities.
The legislation has garnered the support of five new senators, including three members of the Senate Banking, Housing, and Urban Affairs Committee - Senators Raphael Warnock (D-Ga.), Laphonza Butler (D-Calif.), and Chris Van Hollen (D-Md.).
The proposed legislation seeks to mitigate the risks associated with cryptocurrencies by closing loopholes and aligning the digital asset ecosystem with existing anti-money laundering and counter-terrorism financing frameworks.
Warren emphasized the urgency of this bill, citing the Treasury Department's concerns about crypto's role in enabling a wide range of illicit activities.
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She has been vocal about the need for stricter crypto regulations, previously stating that cryptocurrencies have been used to fund terrorist groups, rogue nations, and other criminal enterprises.
Her stance is supported by other senators, including Senator Van Hollen, who stressed the necessity of governing crypto with the same transparency rules as traditional banks.
The bill aims to extend the Bank Secrecy Act's responsibilities to various participants in the digital asset space, including wallet providers and miners.
It also seeks to address the challenges posed by "unhosted" digital wallets and enhance enforcement of compliance with anti-money laundering standards.
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