• Senator Elizabeth Warren claims that rogue nations, drug lords, and oligarchs are using crypto to launder money.
• She has proposed a bill called the Digital Asset Anti-Money Laundering Act of 2022 to close loopholes and apply common-sense rules to the industry.
• The Blockchain Association’s chief policy officer Jake Chervinsky believes that the proposed bill will also affect legitimate crypto activities as it will effectively ban digital assets in the US.
Senator Elizabeth Warren Claims Crypto Used for Illicit Activity
US Senator Elizabeth Warren has warned that “rogue nations, oligarchs, and drug dealers” are using cryptocurrency to fund their criminal regimes. The long-time crypto critic says she has proposed a bill that could address this illegal use of digital assets.
Digital Asset Anti-Money Laundering Act of 2022
The Digital Asset Anti-Money Laundering Act of 2022 was introduced by Senator Warren in December 2022 with the aim of making the crypto industry comply with the same money laundering rules as traditional financial systems. This bill aims to close loopholes and apply common-sense rules to the industry thus preventing criminals like drug traffickers and ransomware attackers from laundering billions in illicit funds through cryptocurrencies.
Effect on Legitimate Crypto Activities
According to the Blockchain Association’s chief policy officer Jake Chervinsky, this bill might have an effect on legitimate crypto activities due to its effective ban on digital assets in the US. He said “Senator Warren’s bill would impose a de facto ban on crypto in the USA, criminalizing all sorts of legitimate activity like mining and staking, while doing nothing to actually combat illicit finance.”
Senator Warren’s Statement
At a Senate Banking, Housing, and Urban Affairs Committee hearing Senator Elizabeth Warren stated,”Look, the rules should be simple: same kind of transaction, same kind of risk, means the same kind of rules.” She plans on reintroducing this legislation come February in order for it take effect soon after.
Conclusion
Cryptocurrency is increasingly being used for illicit financial activities and laundering stolen funds which is why Senator Elizabeth Warren has proposed a new law which hopes to tackle this problem by closing loopholes and applying similar rules across both traditional financial systems as well as cryptocurrency markets.