A bipartisan group of nine US senators have publicly backed Senator Elizabeth Warren’s Digital Asset Anti-Money Laundering Act, according to a statement from Warren’s office on September 18, 2023.
The bill, which was reintroduced by Warren in July 2023 with the support of Republican Senators Joe Manchin, Roger Marshall, and Lindsey Graham, would require cryptocurrency exchanges and other businesses to comply with anti-money laundering (AML) and know-your-customer (KYC) regulations. It would also give the Treasury Department more authority to track and investigate cryptocurrency transactions.
The nine senators who have now publicly backed the bill are all Democrats:
In a statement, Warren said that the growing support for her bill shows that “Congress is ready to take action” on cryptocurrency regulation.
“Our bipartisan bill is the toughest proposal on the table cracking down on crypto’s illicit use and giving regulators more tools in their toolbox,” Warren said.
The Digital Asset Anti-Money Laundering Act has also been endorsed by a number of anti-crime and consumer protection groups, including Transparency International U.S., Global Financial Integrity, the National District Attorneys Association, the Major County Sheriffs of America, the National Consumer Law Center, and the National Consumers League.
The bill is still in its early stages and it is not yet clear when or if it will come to a vote in the full Senate. However, the growing support from both Democrats and Republicans is a sign that there is increasing momentum for cryptocurrency regulation in the US.
What does the bill do?
The Digital Asset Anti-Money Laundering Act would require cryptocurrency exchanges and other businesses to comply with anti-money laundering (AML) and know-your-customer (KYC) regulations. This would mean that businesses would have to collect and verify the identity of their customers, and to report suspicious activity to the Treasury Department.
The bill would also give the Treasury Department more authority to track and investigate cryptocurrency transactions. This would include the ability to subpoena information from cryptocurrency businesses and to freeze the assets of individuals and entities suspected of using cryptocurrency for illegal activities.