• Senator Elizabeth Warren claims that drug lords and “rogue nations” are using crypto to launder money.
• She has introduced a bill (The Digital Asset Anti-Money Laundering Act of 2022) to force the crypto industry to comply with money laundering rules.
• Jake Chervinsky, the Blockchain Association’s chief policy officer, believes the bill will effectively ban digital assets in the US and criminalize legitimate activities like mining and staking.
Senator Elizabeth Warren’s Claims
US Senator Elizabeth Warren says crypto is helping to facilitate all kinds of crime and illicit financial activity. According to her, “rogue nations,” oligarchs and drug dealers are using cryptocurrency to fund their criminal regimes.
The Digital Asset Anti-Money Laundering Act of 2022
In December of 2022, Warren introduced The Digital Asset Anti-Money Laundering Act of 2022 in an attempt to make the crypto industry comply with the same money laundering rules that apply to the traditional financial system. The Senator announced plans to reintroduce this legislation in February as she warned against criminals like drug traffickers and ransomware attackers as well as states like North Korea and Iran using crypto for illicit funds.
Consequences Of The Bill
According to Jake Chervinsky, the Blockchain Association’s chief policy officer, this proposed bill could have negative consequences on legitimate crypto activities as it will effectively ban digital assets in the US while doing nothing to actually combat illicit finance.
Said Warren at a Senate Banking, Housing, and Urban Affairs Committee hearing: “Look, the rules should be simple: same kind of transaction, same kind of risk, means the same kind of rules.”