Breaking News: US Senators to Reintroduce Cryptocurrency Legislation to Tackle Money Laundering and Terror Financing
In a move to prevent crypto firms from evading anti-money laundering and terror financing regulations, a trio of US Senators will reintroduce key cryptocurrency legislation this week. This legislation, known as the Digital Asset Anti-Money Laundering Act, will mandate that crypto wallet providers and miners improve their customer identification processes. It will also direct the Treasury Department’s Financial Crimes Enforcement Network (FinCEN) to implement customer verification procedures and provide guidance to banks on handling crypto transactions.
According to TD Securities, this legislation is broadly positive for the crypto sector as it provides political cover for lawmakers to support future stablecoin and crypto market structure legislation. The House is expected to pass the bill under suspension of the rules, requiring a two-thirds vote for passage.
The Financial Technology Protection Act, another piece of legislation, will establish a working group involving banking agencies, the crypto industry, and law enforcement to combat terrorism and illicit financing on digital platforms. This group will research illicit financial transactions and propose legislative actions to enhance anti-money laundering and counter-terrorism efforts.
TD Securities emphasizes that these legislative actions do not impose new burdens on the crypto industry but create a dialogue with law enforcement. The passage of these bills would help advance stablecoin legislation and crypto market structure legislation, showing a commitment from both the industry and the government to strengthen anti-money laundering controls for crypto.
While TD Securities is skeptical about the bill getting floor time in the Senate, the House vote is crucial as it provides political protection for future votes on stablecoin and market structure legislation. Lawmakers do not necessarily need this legislation to become law to benefit from the political cover it provides.
In conclusion, these legislative efforts aim to strengthen anti-money laundering and counter-terrorism measures in the cryptocurrency industry, providing clarity and guidance for businesses and investors. By supporting these bills, lawmakers can address money laundering concerns and enhance the overall integrity of the crypto market. It is important for individuals to stay informed about these developments as they can have a significant impact on their investments and financial decisions.