A Stronger Coalition
Democratic Senators Gary Peters, Dick Durbin, Tina Smith, Jeanne Shaheen, Bob Casey, Richard Blumenthal, Michael Bennet, Catherine Cortez Masto, and independent Senator Angus King have endorsed the bill. The robust faction signals a readiness by Congress to take action and instigate the “toughest proposal on the table cracking down on crypto’s illicit use.”
Expanded Regulatory Framework
The bill proposes extending the regulatory oversight applied to conventional financial institutions to cryptocurrency firms. This extension would be in line with Know Your Customer (KYC) and Anti-Money Laundering (AML) mandates stipulated in the Bank Secrecy Act (BSA). Consequently, this would encompass digital asset wallet providers, miners, and validators.
Action Against Non-Custodial Wallets
The Act especially targets noncustodial crypto wallets, which are identified as software or hardware that enables the storage of public and private keys used to transact digital assets securely. The law would impose requirements on banks and money service businesses to verify customer identities, maintain records, and file reports regarding certain digital asset transactions involving these wallets.
Wider Support for the Bill
Apart from the senators, several organizations have endorsed the bill. This list includes Transparency International U.S., Global Financial Integrity, the National District Attorneys Association, the Major County Sheriffs of America, the National Consumer Law Center, and the National Consumers League.
Key Points
Who are the new sponsors of the Digital Asset Anti-Money Laundering Act?
Nine additional senators, including Gary Peters, Dick Durbin, Tina Smith, Jeanne Shaheen, Bob Casey, Richard Blumenthal, Michael Bennet, Catherine Cortez Masto, and independent Senator Angus King, have endorsed the Act.
What is the aim of the Digital Asset Anti-Money Laundering Act?
The Act aims to crack down on the illicit use of cryptocurrencies and enhance compliance and transparency in the industry.
Who else has backed the bill?
Several organizations, including Transparency International U.S., Global Financial Integrity, the National District Attorneys Association, the Major County Sheriffs of America, the National Consumer Law Center, and the National Consumers League, have shown support for the Act.
What is the potential effect of the Act on the crypto industry?
If passed, the Act could drastically reshape the cryptocurrency landscape, tightening regulations and closing tax loopholes.
