Senator Elizabeth Warren is leading a new regulatory campaign for crypto as she says entities are using the technology to fund illicit activities, including terrorism.
The Massachusetts Democrat recently unveiled a bipartisan bill she says aims to clamp down on crypto money laundering and other illegal schemes.
“Rogue nations, oligarchs and drug lords are using crypto to launder billions, evade sanctions and finance terrorism. My bipartisan bill puts common-sense rules in place to help close crypto money laundering loopholes and protect our national security.”
The bill, which calls upon the U.S. Treasury Department’s Financial Crimes Enforcement Network (FinCEN) to issue guidelines for the digital asset industry, aims to establish regulations that aim to make it difficult for bad actors to use crypto assets as tools for crime.
One of the rules proposed by Warren includes forcing American citizens who partake in crypto transactions larger than $10,000 outside of the US to report them to the relevant authorities.
“Not later than 120 days after the date of enactment of this Act, the Financial Crimes Enforcement Network shall promulgate a rule that requires United States persons engaged in a transaction with a value greater than $10,000 in digital assets through one or more accounts outside of the United States to file a report.”
The bill further asks FinCEN to classify unhosted crypto wallets, crypto miners, and node validators as money service businesses subject to regulations.
“The Financial Crimes Enforcement Network shall promulgate a rule classifying custodial and unhosted wallet providers, cryptocurrency miners, validators, or other nodes who may act to validate or secure third-party transactions, independent network participants, including MEV [maximal extracted value] searchers, and other validators with control over network protocols as money service businesses.”
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