In an effort to combat illegal activities and money laundering concerns in the cryptocurrency industry, nine U.S. Senators have voiced support for the Digital Asset Anti-Money Laundering Act proposed by Senator Elizabeth Warren. This bipartisan show of support has significant implications for the crypto market and raises questions about the future of Bitcoin and institutional participation in the crypto-asset space. Here are the details…
US senators talked about cryptocurrencies
The list of Senators supporting the bill reads like a cross-party coalition that includes prominent Democratic Party members such as Gary Peters, Dick Durbin, Tina Smith, Jeanne Shaheen, Bob Casey, Richard Blumenthal, Michael Bennet and Catherine Cortez Masto. They are joined in this initiative by independent Senator Angus King. It is noteworthy that Senator Peters chairs the Senate Homeland Security and Governmental Affairs Committee and Senator Durbin chairs the Senate Judiciary Committee. Senator Warren, the driving force behind this bill, welcomed the support of her colleagues, saying:
Our expanding coalition shows Congress is ready to act—our bipartisan bill is the toughest proposal on the table to crack down on illegal use of crypto and give regulators more tools.
Non-custodial BTC and altcoin addresses are targeted
The Digital Asset Anti-Money Laundering Act, reintroduced by Senator Warren alongside Senators Joe Manchin, Roger Marshall, and Lindsey Graham in July 2023, has garnered significant attention for its comprehensive approach to addressing crypto-related concerns. In its current form, the legislation targets non-custodial crypto wallets, expands the scope of the Bank Secrecy Act, establishes Anti-Money Laundering/Combating the Financing of Terrorism compliance reviews, and introduces other legislative measures to combat the illegal use of cryptocurrencies.
Senator Warren’s rationale for this legislation focuses on what she describes as the “$50 billion crypto tax loophole.” He argues that if tax policies are not updated in a timely manner, the Internal Revenue Service and the US Treasury could lose approximately $1.5 billion in tax revenue for fiscal year 2024. This shared support from senators and broader support from organizations such as the Banking Policy Institute, Transparency International USA, Global Financial Integrity and the National District Attorneys Association underscore the urgency to comprehensively address crypto issues.
BTC price is on the rise
The provisions of the Digital Asset Anti-Money Laundering Act go beyond taxation. It covers vital measures to improve cryptocurrency regulations, including expanding the Bank Secrecy Act to non-custodial digital wallets and establishing compliance reviews for Anti-Money Laundering and Combating the Financing of Terrorism. The cryptocurrency market responded cautiously to these developments. As of now, Bitcoin is trading at $27,000, reflecting a 0.43% gain in the last 24 hours, reflecting a 0.74% increase. This reaction indicates a balanced outlook amid upcoming regulatory changes.
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