By
Bhushan Akolkar
April 26th, 2024
Senator Elizabeth Warren has been a vocal advocate for crypto regulation, consistently highlighting the risks posed by unchecked illegal activities.
United States lawmakers, led by Democratic Senator Elizabeth Warren of Massachusetts, have announced an extended coalition of Senate support for the bipartisan Digital Asset Anti-Money Laundering (AML) Act in a new push for crypto regulation.
Senator Warren’s Call to Action
As highlighted in a press release, the Senators unveiled a new Bill that comes in response to warnings against crypto from the Treasury Department, Department of Justice (DOJ), and other national security and financial crime experts.
Senator Elizabeth Warren highlights the urgency of new laws to combat the misuse of cryptocurrencies in financing terrorist groups, supporting rogue nations, aiding drug lords, and ransomware gangs, and enabling fraudsters to launder stolen funds.
Senators Raphael Warnock (D-Ga.), Laphonza Butler (D-Calif.), Chris Van Hollen (D-Md.), John Hickenlooper (D-Colo.), and Ben Ray Luján (D-N.M.) have joined as cosponsors, showcasing broad support from both members of the upper legislative body. The senators emphasized the need for comprehensive regulation to mitigate the risks associated with cryptocurrencies and align their use with existing financial safeguards.
The crypto regulation bill has garnered support from various organizations, including the Bank Policy Institute, Massachusetts Bankers Association, Global Financial Integrity, National District Attorneys Association, National Consumer Law Center, and National Consumers League. The proposed Digital Asset AML bill seeks to extend Bank Secrecy Act (BSA) responsibilities, including Know-Your-Customer requirements, to digital asset wallet providers, miners, validators, and other network participants.
Furthermore, the bill aims to direct the Financial Crimes Enforcement Network (FinCEN) to issue guidance on mitigating risks associated with anonymized digital assets, extend BSA rules regarding reporting of foreign bank accounts to include digital assets and strengthen enforcement of BSA compliance by establishing AML/CFT compliance examination and review processes.
Senator Warren’s Advocacy for Crypto Regulation
Senator Elizabeth Warren has been a vocal advocate for crypto regulation, consistently highlighting the risks posed by unchecked illegal activities. Her previous efforts include urging investigations into crypto exchanges, addressing national security risks, and calling for transparency in energy use by crypto miners.
Senators Warren and Van Hollen wrote to Attorney General Merrick Garland in June, requesting that the DOJ investigate the crypto exchanges Binance and Binance.US for potentially making a series of misleading representations to Congress.
In October, Senator Warren testified about the need to tighten down on crypto-threats at a Senate Armed Services Committee hearing, stating that half of North Korea’s missile program is funded by crypto crime.
In December 2022 following the collapse of the FTX Derivatives exchange, Senators Warren and Roger Marshall sponsored the Digital Asset Anti-Money Laundering Act, which aims to implement various restrictions that were seen as highly harsh and illegal.
In addition to the national security and financial stability aspects, Senator Elizabeth Warren has also addressed environmental concerns related to cryptocurrency. She called on crypto miners to ensure increased transparency regarding energy use and transmissions. The Environmental Protection Agency (EPA) and the Department of Energy (DOE) confirmed their authority to require emissions and energy-use disclosures from crypto miners.