Crypto industry faces new pressure from anti-money laundering regulations

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A bipartisan group of senators on Wednesday introduced an amendment to the National Defense Authorization Act (NDAA) that includes new anti-money laundering provisions for the crypto industry.

Sense. Kirsten Gillibrand (DN.Y.) and Cynthia Lummis (R-Wyo.), Elizabeth Warren (D-Mass.) and Roger Marshall (R-Kan.), teamed up to present the proposal, aimed at preventing the use of crypto assets in illicit financial transactions, in an amendment to annual legislation that sets the budget for the country’s armed forces.

The amendment “would require regulators to establish review standards for financial institutions engaged in crypto-asset activities and would require the Treasury Department to make recommendations to Congress regarding crypto-asset mixers and crypto-enhancing assets. anonymity,” according to Gillibrand’s office.

“Prohibiting the use of cryptocurrencies for money laundering and illicit financing is critical to both our national security and our economy. This amendment will require federal regulators to adopt strict review standards that will help prevent the use of cryptocurrencies in illegal activities,” Gillibrand said in a statement.

The Senate began reviewing the annual national defense policy package on Tuesday after the House approved the must-have legislation last week. Conservative Republican House lawmakers added several amendments, leading to an unusually partisan vote.

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The proposed cryptocurrency amendment was developed from a Lummis and Gillibrand bill reintroduced earlier this month that aims to create a regulatory framework for crypto assets – as well as a bill from Warren and Marshall introduced last year to extend the fight against money laundering to cryptocurrency.

Lummis and Gillibrand were seen as more supportive of the crypto industry, while Warren and Marshall were more critical of the rapidly growing industry, pushing to expand government regulatory power over crypto.

Marshall said in a statement that the proposed new bipartisan amendment to the NDAA “will establish common-sense standards to ensure that appropriate safeguards are in place as the use of cryptography continues.” [to] grow around the world.

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