Wall Street Bank approves Elizabeth Warren’s tough crypto bill

Well-known crypto critic, Senator Elizabeth Warren, has won support from Washington-based banking advocacy group the Bank Policy Institute (BPI) for newly introduced bipartisan legislation that seeks to regulate the crypto industry. cryptography and closing loopholes for illicit activity.

His support was seen as a peculiar move, as Warren and the Wall Street banks had hardly agreed on the same things before. In fact, the senator has been known to blow up the trade group from time to time.

Count on the support of BPI

In an unexpected turn of events, the Bank Policy Institute (BPI) backed the bill, which calls for stricter anti-money laundering rules and counter-terrorist financing measures specifically for the crypto sector.

The whole premise of BPI’s decision is that the existing AML structure in the United States does not cover digital assets.

Explaining his decision to back the legislation, bank lobbyists said:

“BPI supports bipartisan efforts to help combat money laundering and believes this measure is an important step in that direction. The existing framework of anti-money laundering and bank secrecy law must make account of digital assets, and we look forward to engaging in this process to defend our country’s financial system and illicit finance in all its forms.

The bill was originally introduced by the Massachusetts senator in December 2022, a month after FTX’s dramatic collapse. He was reintroduced by Warren and three other senators, Democratic Senator from West Virginia Joe Manchin and Republican Senators Roger Mashall from Kansas and Lindsey Graham from South Carolina, on Friday.

In addition to BPI, the bill has also been endorsed by the Massachusetts Bankers Association, Transparency International US, Global Financial Integrity, National District Attorneys Association, Major County Sheriffs of America, Massachusetts Sheriff’s Association, AARP, National Consumer Law Center (on behalf of -income customers), National Consumer League.

The Digital Assets Anti-Money Laundering Act

The bill seeks to extend the responsibilities of the Bank Secrecy Act (BSA), including KYC requirements, to crypto wallet providers, miners, validators, and other network participants.

It also appears to fill what it describes as a “major gap” in terms of “non-hosted” digital wallets, which allow users to circumvent AML and sanction controls. The legislation also includes measures to direct FinCEN to deploy guidance to financial institutions to mitigate the risks associated with handling digital assets that have been mixed with coin mixers such as Tornado Cash and other privacy technologies.

Strengthening BSA compliance enforcement, extending BSA rules regarding reporting of foreign bank accounts to include digital assets, and granting FinCEN oversight of illicit financial risks of digital assets are some of the other aspects of the seven-page legislation.

The latest development comes on the heels of another major crypto bill, FIT21, which aims to end the turf war between the SEC and CFTC over regulatory oversight of the space and bring much-needed clarity to the industry. ‘industry. The bill has garnered support from several crypto players, including Coinbase CEO Brian Armstrong.


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