Senators Roger Marshall of Kansas and Elizabeth Warren of Massachusetts are collaborating on legislation that would impose stricter anti-money laundry regulations on digital assets.
Although it is doubtful that the measure will be confirmed prior to the today’s Congress adjourns in the second month of winter, it might influence discussions on how to better apply anti-money laundry rules to digital currencies and encourage authorities to complete their guidelines.
Senators’ new law can regulate the crypto sector
Senators Elizabeth Warren from Massachusetts and Roger Marshall from Kansas have introduced legislation to enforce stronger anti-money laundry guidelines on digital currencies.
Wallet providers, cryptocurrency miners, verifiers, and other system users would all be subject to the know-your-customer requirements under the proposal, the senators said in a joint statement.
It would also forbid financial institutions from utilizing or interacting with transaction mixers, decentralized software tools that conceal the source of operations on distributed ledger platforms like Ethereum.
Warren stated that this proposal will guarantee that the same guidelines are applicable across similar monetary operations and that the cryptocurrency business should adhere to common sense regulations like Western Union, brokers, and banks.
The bipartisan legislation is unlikely to succeed during the current Congress, but it’ll likely be introduced again once the new one convenes in January.
The idea, which would further enlarge rules despised by many cryptocurrency users and advocates, may also expedite ongoing regulatory processes at federal agencies.
By implementing equivalent regulations for cryptocurrency exchanges, it will be impossible for law-abiding Americans to misuse digital assets to fund illicit activity.
The 2 senators also want the Financial Crimes Enforcement Network (FCEN) to complete a rule mandating that banks and financial service providers report and keep track of counter-parties and financial transactions involving digital currency wallets that are not hosted in the United States or in countries that do not comply with its anti-money money laundry laws.