US Democratic Senator Elizabeth Warren, known for her opposition to cryptocurrencies, has once again proposed a new cryptocurrency bill in the middle of the month. The bill aims to expand the Know Your Customer (KYC) identification requirements in the Bank Secrecy Act to include wallet providers, miners, validators, and other participants in the digital asset industry. This stringent bill immediately sparked protests from the industry and community.
As a representative of the US Congress opposing cryptocurrencies and blockchain, Senator Elizabeth Warren of the Democratic Party, together with Republican Senator Roger Marshall, jointly released a new bill aimed at tightening cryptocurrency regulation on the 12th, triggering strong backlash from the industry and community.
The controversial measures in the bill, titled “2023 Digital Asset Anti-Money Laundering Act,” include:
– Expanding the KYC identification requirements in the Bank Secrecy Act to include wallet providers, miners, validators, and other participants in the digital asset industry.
– Requiring banks and cryptocurrency service providers to regularly report and retain information about transactions and counterparties involving “non-custodial digital asset wallets.”
– Requiring US individuals conducting digital asset transactions exceeding $10,000 through offshore accounts to submit reports to the Internal Revenue Service.
Warren had previously introduced a precursor to this bill in December of last year, claiming that this bipartisan bill would help prevent billions of dollars in cryptocurrency money laundering and protect US national security.
Currently, the bill has garnered support from five senators. In addition to the two co-sponsors, the other three senators, Raphael Warnock, Laphonza Butler, and Chris Van Hollen, are Democratic colleagues of Warren on the Senate Banking Committee.
Coinbase, the largest cryptocurrency exchange in the US, and Galaxy Digital, a cryptocurrency financial services giant, have publicly criticized Warren’s strict stance on cryptocurrency regulation.
Interestingly, the cryptocurrency community does not seem to be concerned about the passage of this stringent bill, as Warren’s legislative track record has been quite bleak, with none of her bills proposed in the past seven years ultimately becoming law.
Senator Warren has questioned the lobbying activities of the cryptocurrency industry. It is worth mentioning that according to Politico, on the 19th, Warren sent letters to several prominent digital asset organizations, including Coinbase, the Blockchain Association, and Coin Center. She requested detailed information about the compensation, job responsibilities, etc., of former military personnel, government officials, and congressional members employed by these organizations. Jerry Brito, the executive director of Coin Center, rebutted Warren’s allegations through a statement.
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Cryptocurrency regulation
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Political lobbying
United States