Growing Support for Elizabeth Warren’s Crypto Bill: 9 Senators joins the push – Senator Elizabeth Warren has been at the forefront of pushing for stricter regulations on cryptocurrencies. Her recent initiative, the Digital Asset Anti-Money Laundering Act, is gaining momentum, with nine other U.S. Senators expressing their support. But what does this bill mean, and why is it crucial?
A Bipartisan Coalition Backing Crypto Regulation
The crypto space has often been seen as the Wild West, with minimal oversight and regulations. However, Senator Warren aims to change that with her bill that focuses on curbing crypto’s potential use in illicit activities like money laundering, drug trafficking, and evasion of sanctions.
In a recent development, nine U.S. Senators have publicly backed Warren’s proposal. The lineup includes notable figures from the Democratic Party such as Senators Gary Peters, Dick Durbin, Tina Smith, Jeanne Shaheen, Bob Casey, Richard Blumenthal, Michael Bennet, and Catherine Cortez Masto. Independent Senator Angus King has also joined the cause. Notably, Peters chairs the Senate Homeland Security and Governmental Affairs Committee, while Durbin heads the Senate Judiciary Committee.
Warren warmly welcomed the growing support for her initiative, emphasizing the readiness of Congress to act. “Our expanding coalition signifies that we’re prepared to roll up our sleeves and take decisive action. Our bipartisan proposal is the most stringent one out there, aiming to curb crypto’s unsavory applications and arm regulators with more tools,” Warren stated.
Resounding Endorsements from Key Entities
The bill isn’t just popular among Senators; several influential organizations have also expressed their endorsement. This list includes Transparency International U.S., Global Financial Integrity, the National District Attorneys Association, Major County Sheriffs of America, the National Consumer Law Center, and the National Consumers League.
The Key Components of Warren’s Proposal
Senator Warren first introduced the Digital Asset Anti-Money Laundering Act in July 2023, in collaboration with Senators Joe Manchin, Roger Marshall, and Lindsey Graham. The bill’s current iteration aims to:
- Target noncustodial digital wallets.
- Extend the responsibilities under the Bank Secrecy Act.
- Establish a compliance examination for Anti-Money Laundering and Combating the Financing of Terrorism.
- Implement other legal measures to counteract the unlawful usage of digital currencies.
One of Warren’s significant concerns revolves around the potential “crypto tax gap.” She estimates this gap to be around $50 billion, warning that the Internal Revenue Service (IRS) and the U.S. Treasury might lose approximately $1.5 billion in tax revenue for the fiscal year 2024 if there’s a delay in updating tax policies.
The increasing support for Senator Warren’s crypto bill signifies a shift in the U.S. regulatory landscape. As cryptocurrencies become an integral part of the financial ecosystem, the need for clear regulations and preventive measures against illicit activities is paramount. With backing from a growing number of Senators and influential organizations, it seems the U.S. is taking a step closer to creating a safer and more accountable digital financial environment.