Senator Elizabeth Warren Secures Extra Support for Her Crypto Bill
- Elizabeth Warren’s legislation lays out strict Know Your Customer (KYC) and reporting obligations for digital service providers.
- The new rule also demands improved coordination among government agencies to prevent crimes like money laundering.
- Elizabeth Warren has gained a reputation for what many believe to be an anti-crypto stance.
The crypto industry is set to undergo major changes as Senator Elizabeth Warren’s Digital Asset Anti-Money Laundering Act gains more support from other nine US senators, such as Tina Smith, Dick Durbin, Jeanne Shaheen, Michael Bennet, Bob Casey, Gary Peters, Richard Blumenthal, Catherine Cortez Masto, and independent Senator Angus King.
This surge in backing highlights the growing momentum behind regulatory efforts aimed at ensuring transparency and accountability within the digital asset space.
According to reports, the bill is aimed at regulating digital assets and preventing illicit financial activities. In addition, the massive support from the new list of senators reflects a growing bipartisan support for cryptocurrency regulation.
The National District Attorneys Association, the Major County Sheriffs of America, the National Consumers League, Global Financial Integrity, Transparency International U.S., and the National District Attorneys Association are some of the organizations that have endorsed Senator Warren’s proposed legislation.
Reacting to the massive support, Warren said in a statement:
Our expanding coalition shows that Congress is ready to take action; our bipartisan bill is the toughest proposal on the table, cracking down on crypto’s illicit use and giving regulators more tools in their toolbox.
Senator Warren described her bill as a response to the increasing use of assets like cryptocurrencies in financial transactions and concerns that these assets could be used to aid money laundering and illegal activities.
In a statement about her bill, Senator Warren noted that “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,” hence the need for her bill to be passed.
Warren’s policy proposes stringent reporting requirements and accountability measures for various key players in the digital asset market, such as wallet providers and crypto exchanges.
Interestingly, US Senator Graham further stressed that the legislation “will help create transparency and provide oversight in an industry that in many cases helps facilitate criminal activity.” Graham went on to state that “when it comes to transparency and legality, many of the same rules that apply to the dollar should exist for crypto.”
Crypto will benefit from more safety policies.
Senator Warren added that by implementing the prescribed safeguards, the crypto industry will be encouraged to innovate while also being protected from any risks. In addition, the bill’s sponsors allegedly believe that adequate regulation can increase confidence in the digital asset market and encourage responsible adoption.
Warren also claims that there is a $50 billion crypto tax gap, and if a tax policy revision is put off, the Internal Revenue Service and the U.S. Treasury might lose out on about $1.5 billion in tax income for the 2024 fiscal year.
Senator Warren’s bill was initially proposed in December 2022 and was reintroduced in August of this year. It aims to keep US citizens more accountable by requiring them to submit reports if they have more than $10,000 in cryptocurrency in one or more accounts outside of the country.
Although the bill’s legislative journey is far from over, the growing number of sponsors reflects the urgent need to address money laundering issues in the crypto space. In addition, key stakeholders believe that regulations that strike a balance between innovation and security are crucial to ensuring the appropriate development of the digital asset market.
Lawrence has covered some exciting stories in his career as a journalist, he finds blockchain-related stories very intriguing. He believes Web3 will change the world and wants everyone to be a part of it.
