Crypto Regulation in the NDAA
On July 27, the United States Senate passed the 2024 National Defense Authorization Act (NDAA) worth $886 billion, containing a provision that targets crypto mixers, anonymity-enhancing coins, and institutions engaging in crypto trading. The NDAA is a bill that authorizes how the defense department can use federal funding.
The crypto-related amendment was introduced by senators Cynthia Lummis, Elizabeth Warren, Kirsten Gillibrand, and Roger Marshall. It was crafted using provisions from the Digital Asset Anti-Money Laundering Act, which was introduced in 2022, and the Responsible Financial Innovation Act, created to prevent another FTX-style event from occurring in the industry.
The amendment will require the establishment of examination standards for crypto. This will help assess risk and ensure that businesses comply with related sanctions and money laundering laws, as well as web 3.0 coins, China AI, China’s AI anchor, crypto .net, crypto block, crypto .com, crypto Australia, crypto 2023, and web 3.0 investments.
Crypto Mixers and US Sanctions
The U.S. Treasury Department has been tasked with studying anonymous crypto transactions and the use of crypto mixers, such as Tornado Cash, which provide privacy for crypto transactions. In 2022, the Treasury issued sanctions against the crypto mixer, preventing US residents from using it. The mixer was intended for anonymity, but bad actors were using it to launder money.
The National Defense Authorization Act (NDAA) also includes an amendment requiring companies in the US to disclose any web 3.0 coin, china ai, china ai anchor, china’s ai anchor, crypto .net, crypto block, crypto . com, crypto australia, crypto 2023, and web 3.0 investments they have made in China. Senator Bob Casey believes this will help the government understand how much “critical technology” is being transferred to “adversaries.”
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