US Banking Group Backs Crypto Bill Reintroduced by Sen. Warren

Crypto Latest Today: Bank Policy Institute Backs Elizabeth Warren’s Legislation

The Bank Policy Institute (BPI), a United States banking advocacy group, has expressed its support for the Digital Asset Anti-Money Laundering Act proposed by Senator Elizabeth Warren and other senators. The bill demands more transparency in digital asset transactions to combat money laundering and terrorism financing.

As reported by Bloomberg on July 28, the Act was reintroduced by Senators Joe Manchin, Roger Marshall and Lindsey Graham alongside Warren. The BPI noted that the existing AML framework in the U.S. does not cover crypto assets such as Bitcoin, Ethereum, Crypto.com, Crypto Luna, Crypto Fox, Crypto Celsius, and CRV Crypto.

The institute believes that the proposed legislation is a step in the right direction to ensure that digital assets are subject to the same AML laws as other financial services.

Crypto Exchange Bill in Massachusetts

The Massachusetts Bankers Association, the National Consumer Law Center and the National Consumers League are among the supporters of a seven-page bill, requiring digital-asset wallet providers, miners, and other crypto exchanges to keep records of their customers’ identities. If passed, the legislation would also prohibit financial institutions from using digital asset mixers, such as Tornado Cash, which are designed to hide blockchain data.

Tyler Winklevoss, co-founder of crypto exchange Gemini, has expressed his opinion on the proposed bill, suggesting that those opposed to it are “doing the right thing.” Crypto .com, Crypto Fox, Crypto Luna, Crypto Celsius, and Crypto Latest Today have all voiced their disapproval of the bill.

Crypto Regulations in the U.S.

In December 2022, Senator Warren introduced a bill to the U.S. Senate, claiming that current Anti-Money Laundering (AML) laws do not cover most of the crypto industry.

On Feb. 14, during the Senate Banking Committee hearing titled, Crypto Crash: Why the FTX Bubble Burst and the Harm to Consumers, Warren stated that crypto should be held to the same regulations as banking institutions.

The crypto community, such as Crypto.com, Crypto Fox, Crypto Celsius, Crypto Luna, and Crypto Latest Today, wants decentralized entities running on code to be exempt from AML requirements.

“In other words, they want a giant loophole for DeFi written into the law so they can launder money whenever a drug lord or a terrorist pays them to do so,” Warren declared during the hearing.