The crypto community is up in arms over the U.S. Senator’s attempt at introducing a bill skeptics say is aimed at curbing cryptocurrency growth and innovation.
With the crypto community on edge after a tumultuous year that has seen the insolvency of FTX and problems at Binance, regulatory winds could well be on the horizon.
U.S. Senator Elizabeth Warren has introduced a new bill aimed at regulating cryptocurrency.
On Dec. 11, Warren introduced what is dubbed the Digital Assets Anti-Money Laundering Bill.
The has already received support from several over Senators Raphael Warnock (D-Ga.), Laphonza Butler (D-Calif.), Chris Van Hollen (D-Md.), John Hickenlooper (D-Colo.), and Ben Ray Luján (D-N.M.).
The new bill expands the provisions of the Bank Secrecy Act to include a wide range of counterparties to include not only exchanges miners and validators, but also service providers, custodians and crypto wallet entities themselves.
The crypto community believes the bill will not benefit the cryptocurrency industry, and has reacted strongly on X.
According to Coin Center representative Neeraj K. Agrawal, tge anti-money laundering law in digital assets directly attacks technological progress and personal privacy. At the same time, he believes the bill should be vociferously opposed.
The Digital Asset Anti-Money Laundering Act is a direct attack on technological progress and also a direct attack on our personal privacy and autonomy.
Make no mistake, while proposed as a solution to potential money laundering and terrorist financing, the bill is in fact a… pic.twitter.com/8oID1wECGL
— Neeraj K. Agrawal (@NeerajKA) December 11, 2023
Galaxy Research also believes that Warren’s proposed rules would effectively ban Bitcoin (BTC) in the U.S. However, in the comments, users noted that the bill would not likely receive approval.
requiring non-custodial open-source software to perform bank-like compliance is *the big attack* bitcoin’s enemies have always threatened. it’s impossible for bitcoin core, for example, to comply with this, so it amounts to an effective ban of bitcoin in the USA.
— Alex Thorn (@intangiblecoins) December 11, 2023
Last week, the U.S. House of Representatives Committee passed another Bill aimed at supporting blockchain technology, which authorities have rolled out as a way of spearheading a distributed ledger system in the U.S.
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