• Senator Elizabeth Warren first introduced the 2022 AML Act on December 15, 2022.
  • The first bill was read twice and referred to the Senate Banking Committee.
  • Senators now want to reintroduce a bill that also covers decentralized entities.

The past few weeks have seen hostile moves by several US regulators. This includes the recent $30 million imposed on Kraken that forced the closure of a crypto staking product. There was also the matter of the US SEC accusing Paxos Trust of issuing an unregistered security, Binance USD (BUSD).

In light of these trends, Blockchain Association attorney and chief policy officer Jake Chervinsky tweeted that “fear of cracking down on cryptocurrencies has never been higher.”

Senator Warren’s AML Bill

As if recent developments weren’t enough, Senator Elizabeth Warren has promised to reintroduce the Digital Assets Anti-Money Laundering Act of 2022, which was first introduced on December 15, 2022. Entities such as decentralized organizations (DAOs) and decentralized finance (DeFi) protocols”.

During a Senate Banking Committee hearing on Feb. 14, Sen. Warren titled “Crypto Crash: Why Digital Assets Need Financial System Safeguards,” the crypto community is working with code. said that it exempts from the AML requirement any decentralized entity that she said:

“In other words, they want to write huge DeFi loopholes into the law so that drug lords and terrorists can pay to launder money.”

According to Senator Warren, this is why she believed it was important to include DeFi and DAOs in AML policy. She pointed out that current AML legislation does not cover the broader crypto market, which is probably why crypto exchange ShapeShift has been recast as a DeFi platform.

By Jules

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