US Democratic Senator Elizabeth Warren, who is 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) requirements in the Bank Secrecy Act to include wallet providers, miners, validators, and other digital asset participants. This strict bill has immediately sparked protests from the industry and the community.
As a representative of the US Congress opposing cryptocurrencies and blockchain, Senator Elizabeth Warren from the Democratic Party, along with Republican Congressman Roger Marshall, jointly released a new bill on the 12th aimed at tightening cryptocurrency regulation, which has triggered strong backlash from the industry and the community.
The controversial measures in the bill, titled “2023 Digital Asset Anti-Money Laundering Act,” include:
1. Expanding the KYC identity verification requirements in the Bank Secrecy Act to include wallet providers, miners, validators, and other digital asset participants.
2. Requiring banks and cryptocurrency service providers to regularly report and retain transaction counterparties and transaction records involving “non-custodial digital asset wallets.”
3. Requiring US individuals engaging in digital asset transactions exceeding $10,000 through offshore accounts to submit reports to the Internal Revenue Service (IRS).
Warren had already proposed the 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, this bill has received signatures from 5 senators. In addition to the two drafters, the other three senators, Raphael Warnock, Laphonza Butler, and Chris Van Hollen, are Democratic colleagues of Warren on the Senate Banking Committee.
In response to Warren’s new bill, industry leaders in the digital cryptocurrency industry have publicly criticized it. Brian Armstrong, the CEO of Coinbase, the largest cryptocurrency exchange in the United States, retweeted a video from one of the drafters of the bill, Senator Marshall, revealing that the bill was written with the help of the “American Bankers Association,” and he sarcastically commented on it. Mike Novogratz, the founder of cryptocurrency financial services giant Galaxy Digital, also openly criticized Warren’s strict attitude towards cryptocurrency regulation.
Interestingly, the cryptocurrency community seems unconcerned about the passage of this strict bill because Warren’s legislative track record has been quite dismal. None of the bills she has proposed in the past 7 years have ultimately passed into law.
Senator Warren questions cryptocurrency industry lobbying activities.
It is worth mentioning that according to Politico, on the 19th, Warren sent letters to several important digital asset organizations, including Coinbase, the Blockchain Association, and Coin Center. She requested these organizations to provide detailed information about the compensation, job responsibilities, and other details of former military personnel, government officials, and members of Congress they employ. In response to Warren’s accusations, Jerry Brito, the executive director of Coin Center, countered through a statement.
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United States