Today, US Senator Elizabeth Warren inserted legislation to address their concerns surrounding the alleged misuse of digital currencies in illicit activities, citing money laundering, drug trafficking, sanctions evasion and more.
The bill, supported by a coalition within the Banking Committee, marks a major push for greater oversight and regulation within the bitcoin and cryptocurrency sphere. Citing the risks associated with cryptocurrencies, Senator Warren emphasized that digital currencies are used as an avenue for criminal activities and that must be addressed through strict regulatory frameworks.
“The Treasury Department is making clear that we need new laws to crack down on the use of cryptocurrencies to allow terrorist groups, rogue nations, drug traffickers, ransomware gangs and fraudsters to launder billions in stolen funds, evade sanctions, finance illegal weapons programs and benefit from devastating cyberattacks,” Warren said. “I am glad that five new senators are joining the fight to take action, including three members of the Banking Committee; Our bipartisan bill is the toughest proposal on the table to combat the illicit use of cryptocurrencies and give regulators more tools in their toolbox. “
Senator Warren's bill aims to impose stricter reporting requirements by expanding Bank Secrecy Act (BSA) responsibilities, including Know Your Customer (KYC) requirements, reporting on “transactions that involve non-hosted wallets” and more. All in an attempt to close “gaps and make the digital asset ecosystem more compliant.”
This bill is supported by the Bank Policy Institute, the Massachusetts Bankers Association, Transparency International US, Global Financial Integrity, the National District Attorneys Association, the Sheriffs of Major Counties in the United States, the Sheriffs Association of Massachusetts, AARP, the National Consumer Law Center, and the National Consumers League.
The proposed legislation comes at a time when the popularity and adoption of bitcoin has increased around the world, particularly in the United States. As soon as next month, the Securities and Exchange Commission (SEC) will have to make a decision on whether or not to approve the first US spot bitcoin exchange-traded fund (ETF), which if approved, could generate massive institutional and retail demand for btc.
Last Thursday, Senator Warren appeared on CNBC claiming that North Korea is using bitcoin and cryptocurrencies to fund nearly half of its nuclear weapons program.
