Nine United States Senators have pledged their support for the Digital Asset Anti Money Laundering Act, a bipartisan bill introduced by Senator Elizabeth Warren in July 2023. This development was announced in a statement from Senator Warren office, showcasing a growing coalition of lawmakers committed to addressing the challenges posed by cryptocurrencies in the realm of financial crime prevention.
The senators endorsing the bill include prominent Democratic Party members such as Gary Peters, Dick Durbin, Tina Smith, Jeanne Shaheen, Bob Casey, Richard Blumenthal, Michael Bennet, and Catherine Cortez Masto. Additionally, independent Senator Angus King has joined this bipartisan effort. Notably, Senator Peters chairs the Senate Homeland Security and Governmental Affairs Committee, while Senator Durbin leads the Senate Judiciary Committee.
Senator Warren welcomed the support, emphasizing the bill’s strength in tackling the illicit use of cryptocurrencies and providing regulators with enhanced tools. She stated, “Our expanding coalition shows that Congress is ready to take action – our bipartisan bill is the toughest proposal on the table cracking down on crypto’s illicit use and giving regulators more tools in their toolbox.”
The Digital Asset Anti-Money Laundering Act has garnered support from various organizations, including Transparency International U.S., Global Financial Integrity, the National District Attorneys Association, the Major County Sheriffs of America, the National Consumer Law Center, and the National Consumers League. This broad backing underscores the significance of the bill in addressing concerns related to money laundering and financial crime in the digital asset space.
The proposed legislation seeks to strengthen anti-money laundering measures by extending Bank Secrecy Act responsibilities and implementing compliance examinations. It particularly targets noncustodial digital wallets, aiming to mitigate their potential misuse for illegal activities.
Senator Warren has also highlighted a significant financial concern related to cryptocurrencies, stating that there is a “crypto tax gap” estimated at $50 billion. She suggests that the Internal Revenue Service and the U.S. Treasury could miss out on approximately $1.5 billion in tax revenue for the 2024 fiscal year if a tax policy update is delayed. This emphasizes the urgency of addressing regulatory and compliance issues in the digital asset industry, further underscoring the importance of the Digital Asset Anti-Money Laundering Act.
