A prominent banking trade association is helping author Senator Elizabeth Warren’s Digital Asset Anti-Money Laundering Act.
In a new announcement, Republican Senator Roger Marshall of Kansas, who is co-sponsoring the bill with Warren, says: say the American Bankers Association (ABA) had a hand in shaping the potential crypto legislation, which aims to force the crypto industry to comply with the same regulations that apply to the traditional financial system.
“The first thing we did was go to the American [Bankers] Association and said, ‘Help us make this.’
Warren, a Democrat from Massachusetts, first introduced the bill last year and then again in July in hopes of expanding the responsibilities of the Bank Secrecy Act (BSA) – including Know-Your-Customer (KYC) requirements – to crypto wallet providers, miners and validators and other network participants.
The bill would also direct the Financial Crimes Enforcement Network (FinCEN) to require banks and money service companies to verify the identities of customers and counterparties, maintain records, and file reports on certain transactions involving self-custodial wallets.
FinCEN is an agency of the United States Department of the Treasury that monitors money laundering and terrorist financing.
Marshall calls the bill “a step in the right direction” and “a light touch.” However, pro-crypto lobby groups have rejected the potential legislation, calling it unconstitutional and an effective ban on self-custody, striking and mining.
Brian Armstrong, the CEO of US cryptocurrency exchange Coinbase, says Warren and Marshall’s support for the bill amounts to “lobbying for the big banks.”
“Being anti-crypto is a very bad political strategy for 2024:
- 52 million Americans have used crypto
- 38% of young people say crypto can increase economic opportunities
- Only 9% of Americans [are] satisfied with the current financial system
- Crypto prices are up 90% YTD
- http://standwithcrypto.org on the way to 1 million supporters (voters) who want a sensible crypto policy”
The bill is currently being discussed by the Senate Banking, Housing and Urban Affairs Committee.
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