The US Senate approved the 2024 NDAA on Thursday night. It includes a clause to strengthen control of financial institutions involved in crypto trading. The provision targets crypto mixers and “anonymity-enhancing” crypto assets.
The crypto community recognized the amendment as one of the most significant congressional moves involving crypto assets to date. It was proposed by a bipartisan group of US Senators, including Kirsten Gillibrand (D-N.Y.), Cynthia Lummis (R-Wyo.), Elizabeth Warren (D-Mass.), and Roger Marshall (R-Kan.).
The amendment merged provisions from the Lummis-Gillibrand Act of 2023 and the Digital Asset Anti-Money Laundering Act of 2022. It aimed to create a comprehensive regulatory framework for cryptocurrencies. The main goal is to instruct the Treasury Secretary to establish examination standards for digital assets. It ensures accurate risk assessment and compliance with money laundering and sanctions laws.
Furthermore, the amendment mandates the Treasury Department to conduct an extensive investigation. It focuses on stopping anonymous crypto asset transactions, with particular attention to the use of crypto mixers that may obscure fund origins and destinations. Senator Lummis emphasized the importance of eradicating bad actors from the crypto asset industry. The goal is to prevent cryptocurrencies from being used to evade sanctions or fund terrorism.
US Legislators Delve into Cryptocurrency Regulation: Seeking Clarity and Control
It is normal to include modifications that have nothing to do with defense in the NDAA. Both chambers need to negotiate an agreeable final version of the NDAA. The House passed its version earlier this month.
The Financial Innovation Technology for the 21st Century Act gained momentum. It aims to create a federal regulatory framework for cryptocurrencies in the US. The House Financial Services Committee had approved the bill’s version the day before.
These most recent legislative moves show the scrutiny and interest that US policymakers are giving cryptocurrencies. The proposed frameworks aim for clarity and consistency in the crypto world. The NDAA measures signal a desire for increased crypto activity monitoring.
Regulatory measures are vital for fostering innovation and curbing criminal use in the evolving crypto industry. The ongoing legislative processes will reshape the cryptocurrency landscape. Industry players are closely monitoring future developments.