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Senators Elizabeth Warren and Roger Marshall’s crypto anti-money laundering bill has been postponed due to a lack of sponsorships.
Senator Elizabeth Warren and Senator Roger Marshall have been forced to delay their notorious cryptocurrency anti-money laundering bill while the duo recruit more co-sponsors, Blockworks reports. No date has been provided for when the bill’s next iteration can be expected.
The Digital Asset Anti-Money Laundering Act was first introduced in the Senate in December and sought to require the crypto industry, including miners and validators, to comply with rigorous know-your-customer (KYC) rules. The Senator’s revised version has not been made public but reportedly includes the same language its opponents have a problem with.
Blockworks obtained a document which outlines which groups will be responsible for complying with KYC rules:
“Unhosted wallet providers, digital asset miners, validators, or other nodes that may act to validate or secure third-party transactions, independent network participants, including maximal extractable value searchers, miner extractable value searchers, and other validators or network participants with control over network protocols.”
Digital Asset Anti-Money Laundering Bill Has Consumers on the Fence
The postponement certainly affords lawmakers more time to assess the potential impact of this legislation, which makes crypto enthusiasts uneasy about the future of digital assets.
The bill’s strict regulation has been criticised by many as a hindrance to the development of the industry. At the same time, its supporters argue that clear guidelines are necessary to protect consumers and prevent illicit activities.
Regulatory guidance will undoubtedly positively impact the market and inspire renewed confidence among investors. However, we must ask whether Senator Warren and Marshall are overreaching in their scope or whether this is what the industry needs.
Whatever the answer may be, one thing is for sure: a concerted effort needs to be made to explore alternative approaches which offer more security to the market while at the same time maintaining the uniqueness of digital assets.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.