Senator Elizabeth Warren Proposes Legislation To Crack Down on Bitcoin
Today, U.S. Senator Elizabeth Warren proposed a bill aimed at tackling the purported misuse of digital currencies in illegal activities, highlighting issues such as money laundering, drug trafficking, and evasion of sanctions, among others.
The legislation, backed by a group within the Banking Committee, represents a major effort towards enhancing surveillance and control in the Bitcoin and cryptocurrency domain.
Highlighting the dangers linked to Bitcoin and cryptocurrencies, Senator Warren emphasized the need to confront their use in criminal activities through the implementation of rigorous regulatory measures.
“The Treasury Department is making clear that we need new laws to crack down on crypto’s use in enabling terrorist groups, rogue nations, drug lords, ransomware gangs, and fraudsters to launder billions in stolen funds, evade sanctions, fund illegal weapons programs, and profit from devastating cyberattacks,” said Warren.
Elizabeth Warren expressed satisfaction that five new senators, including three from the Banking Committee, are supporting a bipartisan bill she views as the most stringent proposal available for combating illegal activities in the crypto sector and enhancing regulatory capabilities.
Senator Warren's proposed legislation seeks to enforce more stringent reporting obligations by expanding the scope of the Bank Secrecy Act (BSA).
This includes enhancing Know-Your-Customer (KYC) protocols, requiring reports on transactions involving non-custodial (unhosted) wallets, and other measures. The goal is to eliminate "loopholes" and ensure better compliance within the digital asset environment.
In response to the proposed bill, many individuals on X expressed their concerns about Senator Warren’s understanding of Bitcoin and voiced skepticism about the feasibility of successfully enforcing such legislation.
Others have pointed out the discrepancy between the number of bills Senator Warren has introduced and the amount that have actually become law.
The bill has garnered support from a range of organizations, including the Bank Policy Institute, Massachusetts Bankers Association, Transparency International U.S., Global Financial Integrity, National District Attorneys Association, Major County Sheriffs of America, Massachusetts Sheriffs’ Association, AARP, National Consumer Law Center, and the National Consumers League.