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Wall Street banks back Elizabeth Warren’s Digital Asset Anti-Money Laundering Act

Press Releases Crypto News CryptoSlate Wall Street banks back Elizabeth Warren’s Digital Asset Anti-Money Laundering Act

U.S. senator Elizabeth Warren reintroduced the Digital Asset Anti-Money Laundering Act on July 28, backed by unlikely allies — the Wall Street banks.

The Bank Policy Institute, a financial policy think tank made up of a cohort of banks, backed the legislation that aims to mitigate the national security risks posed by cryptocurrencies. Historically, Warren has been a fervent critic of The Bank Policy Institute, but they seemed to have found common ground — the need to crack down on crypto.

Noting that cryptocurrencies have become the “payment method of choice” among cybercriminals, Warren said in a press release:

“This bipartisan bill is the toughest proposal on the table to crack down on crypto crime and give regulators the tools they need to stop the flow of crypto to bad actors.”

Holding crypto players to banking standards

The legislation, which was first introduced in December 2022, will impose the obligations under the Bank Secrecy Act (BSA) on crypto wallet providers, miners, and validators. Crypto service providers and network participants will, therefore, need to meet know-your-customer requirements if the legislation is passed.

The 7-page bill requires the Treasury Department to set up a compliance examination and review process to ensure all crypto money service businesses comply with the anti-money laundering and countering the financing of terrorism (AML/CFT) obligations under BSA. The bill will also direct the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) to set up similar review processes for the crypto businesses under their purview.

Furthermore, crypto businesses must file a Report of Foreign Bank and Financial Accounts (FBAR) with the Internal Revenue Service. Crypto service providers must file the report whenever any U.S. customer uses one or more offshore accounts to conduct crypto transactions over $10,000, as per the bill.

The bill will direct the Financi

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Author: Monika Ghosh

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