Senator Elizabeth Warren’s bipartisan cryptocurrency anti-money laundering bill, the Digital Asset Anti-Money Laundering Act, has gained support from nine more senators, including influential committee chairs. The bill, known as the Digital Asset Anti-Money Laundering Act, aims to bolster regulatory oversight in the rapidly growing cryptocurrency industry by addressing existing loopholes and aligning it more closely with anti-money laundering and counter-terrorism financing frameworks.
Among the senators lending their support are Homeland Security Chair Gary Peters (D-Mich.) and Judiciary Chair Dick Durbin (D-Ill.), along with Senators Tina Smith (D-Minn.), Angus King (I-Maine), Michael Bennet (D-Colo.), Bob Casey (D-Pa.), Catherine Cortez Masto (D-Nev.), Jeanne Shaheen (D-N.H.), and Richard Blumenthal (D-Conn.). Senator Roger Marshall (R-Kansas) leads the bill as a co-sponsor, with Senators Joe Manchin (D-W.Va.) and Lindsey Graham (R-S.C.) also backing the legislation.
The bill’s proponents emphasize the rising use of cryptocurrencies for illicit purposes, citing $20 billion in illicit transactions, 44% of which were linked to sanctioned entities over the past year. To combat this, the bill proposes expanding the scope of the Bank Secrecy Act and implementing know-your-customer (KYC) requirements for digital asset wallet providers, miners, and other participants in cryptocurrency networks.
Senator Manchin stressed that the legislation aims to mitigate security risks associated with cryptocurrency platforms by subjecting them to the same AML regulations as traditional banks. The AARP has also endorsed the bill, signaling growing support for increased cryptocurrency regulation.
Senator Warren has a history of advocating for anti-crypto policies and has previously referred to cryptocurrencies as a preferred method for sanctioned countries like Iraq and Russia. She has also expressed plans to “build an anti-crypto army” in the United States during her re-election campaign.
Earlier in a report by Todayq News on July 29, 2023, the “Digital Asset Anti-Money Laundering Act of 2023,” was also supported by the Bank Policy Institute. While some crypto advocates opposed Warren’s stance, her bipartisan support reflected a growing consensus among progressives, conservatives, and financial institutions to regulate the crypto industry and combat illicit finance.