Senate money laundering bills continue to duel, Dems get 9 new sponsors

Elizabeth Warren and Roger Marshall have 9 brand-new supports for a bill adversaries say could kill American innovation

article-image

US Senator Roger Marshall | mark reinstein/Shutterstock modified by Blockworks

share

Sens. Elizabeth Warren and Roger Marshall have recruited nine new Democratic co-sponsors for their Digital Asset Anti-Money Laundering Act of 2023, a bill some industry advocates say could effectively kill crypto in the US. 

Two committee heads joined the effort and signed onto the legislation: Homeland Security Chair Gary Peters, D-Mich., and Judiciary Chair Dick Durbin, D-Ill. The other new co-sponsors are Sens. 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.

Warren and Marshall reintroduced the bill last month after an initial version of the text was unsuccessful last congressional session

The legislation aims to bring “crypto participants” — defined in the bill as wallet providers, miners and validators — under compliance requirements for financial institutions. If the bill passes, these entities will have to file reports for any transactions exceeding $10,000 and report any activity that could signify money laundering or tax evasion. 

Warren called the legislation “a bill that would close loopholes in anti-money laundering rules, cutting off drug suppliers and cartels from using crypto to facilitate their illegal business,” she said in a July statement

The bill’s adversaries argue that these requirements are too strict and difficult to impose on these parties. 

“The bill effectively removes validators and miners from the US to the detriment of consumer safety and security,” Cody Carbone, vice president of policy at the Chamber of Digital Commerce said. 

Also in the Senate is the Crypto Asset National Security Enhancement Act of 2023, introduced in July and similar to Warren and Marshall’s text. The Crypto Asset National Security Enhancement Act of 2023, as of now, has more bipartisan support. It is sponsored by Sens. Jack Reed, D-R.I.; Mark Warner, D-Va.; Mike Rounds, R-S.D.; and Mitt Romney, R-Utah. 

“Luckily, [the Digital Asset Anti-Money Laundering Act of 2023] still remains a largely partisan effort and does not have support to be enacted,” Carbone added.


Start your day with top crypto insights from David Canellis and Katherine Ross. Subscribe to the Empire newsletter.

Explore the growing intersection between crypto, macroeconomics, policy and finance with Ben Strack, Casey Wagner and Felix Jauvin. Subscribe to the On the Margin newsletter.

The Lightspeed newsletter is all things Solana, in your inbox, every day. Subscribe to daily Solana news from Jack Kubinec and Jeff Albus.

Tags

Upcoming Events

Salt Lake City, UT

MON - TUES, OCT. 7 - 8, 2024

Blockworks and Bankless in collaboration with buidlbox are excited to announce the second installment of the Permissionless Hackathon – taking place October 7-8 in Salt Lake City, Utah. We’ve partnered with buidlbox to bring together the brightest minds in crypto for […]

Salt Lake City, UT

WED - FRI, OCTOBER 9 - 11, 2024

Pack your bags, anon — we’re heading west! Join us in the beautiful Salt Lake City for the third installment of Permissionless. Come for the alpha, stay for the fresh air. Permissionless III promises unforgettable panels, killer networking opportunities, and mountains […]

recent research

Unlocked by Template.png

Research

With the spot ETH ETF approval, the institutions are coming. stETH - given its dominance in marketshare, existing liquid market structures, and highly desirable properties - is poised for institutions.

article-image

Launching cryptocurrencies the old fashioned way may soon make a return

article-image

Kraken and CertiK brought their beef to social media after Kraken said researchers exploited $3 million through a bug

article-image

NVIDIA’s historic run is only deepening the divide between mega-cap tech stocks and the rest of the market.

article-image

EIP-7702 was quickly adopted for the next Ethereum upgrade, but developers haven’t quite locked it down