U.S. Senators, spearheaded by Elizabeth Warren, have broadened bipartisan backing for the Digital Asset Anti-Money Laundering Act to regulate cryptocurrency use.
The bill seeks to address the growing concerns around the misuse of cryptocurrencies in illegal financial activities by incorporating digital assets into the existing anti-money laundering and counter-terrorism financing frameworks.
New supporters of the bill include 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.). The supporters joined a coalition already backed by a diverse group of senators, indicating a strong bipartisan effort.
“The Treasury Department is making clear that we need new laws to crack down on crypto’s use in enabling terrorist groups, 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.”
Senator Elizabeth Warren
Echoing Warren’s concerns, Senator Van Hollen remarked, “The lack of basic legal safeguards around crypto opens up Americans to countless risks […] 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.”
Senator Hickenlooper focused on innovation, noting, “We have safeguards for banks to protect everyone from crime and terrorism. Crypto should have similar safeguards. These reforms will protect safe, transparent innovation.”
Senator Luján added to the chorus of support, highlighting the vulnerability of consumers in the current unregulated state of cryptocurrencies and the need for this legislation to establish strong standards for crypto use.
The bill has garnered endorsements from various organizations, including the Bank Policy Institute, which stated that it supported bipartisan efforts to help crack down on money laundering and believed the measure is an important step.
The legislative initiative comes in response to warnings from the Treasury Department, the Department of Justice, and other experts about the increasing use of digital assets in money laundering, drug trafficking, and other criminal activities.