New Crypto Bill Demands Regulatory KYC for Wallets, Miners...

• Elizabeth Warren expresses excitement about new senators joining the fight to take action against the illicit use of crypto through the new bill
• According to Senator John Hickenlooper, it is necessary to apply the same laws guiding the operation of traditional banks to the crypto industry

The continuous growth of the crypto eco reportedly poses a threat to financial stability, forcing the US authorities to propose a bipartisan Digital Asset Anti-Money Laundering Act. Recently, United States Senator Elizabeth Warren announced the expanded coalition of Senate support for the Act

According to her, senators including “Raphael Warnock (D-Ga.), Laphonza Butler (D-Calif.), Chris Van Hollen (D-Md.), all members of the Senate Banking, Housing, and Urban Affairs Committee, and Senators John Hickenlooper (D-Colo.) and Ben Ray Luján (D-N.M.) have joined the bill as cosponsors. With recent reports that crypto is used to finance terrorism while facilitating the operations of ransomware gangs and acting as a tool for evading sanctions, Warren believes that new laws are needed to crack down on these illicit usages. The new bill would demand a Know-Your-Customer (KYC) verification for wallets, wallet providers, miners, etc

Warren also expressed her excitement about the five new senators joining the fight to take action. According to her, the bipartisan bill is currently the toughest proposal to crack down on the illicit use of crypto.

Senator Van Hollen also commented on the bill:

The lack of basic legal safeguards around crypto opens up Americans to countless risks. What’s more, crypto has become the payment method of choice for terrorist organizations, drug cartels, and authoritarian regimes to fund their illicit activities. Crypto should be governed by the same transparency rules as traditional banks to protect Americans and help ensure it isn’t used to facilitate illegal behavior by criminal enterprises and rogue nations.

Other Senators Speak on the Crypto-Related Bill

Speaking on this, Senator Hickenlooper explained that the safeguard for banks to ensure user protection should be applied to the crypto industry. According to him, this would protect safe and transparent innovation. The Digital Asset Anti-Money Laundering Act is expected to address the major issues with “unhosted” digital wallets. In addition to strengthening the enforcement of BSA compliance, it would mitigate the illicit finance risks of digital asset ATMs

Senator Luján commented on this:

The bill has so far received support from “The Bank Policy Institute, Massachusetts Bankers Association, Transparency International U.S., Global Financial Integrity, National District Attorneys Association, Major County Sheriffs of America, Massachusetts Sheriffs’ Association, AARP, National Consumer Law Center (on behalf of its low-income clients), and National Consumers League.”

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While many believe that this bill could bring sanity to the crypto world, others believe that the original idea of privacy that motivates users to embrace it would be defeated