Capitol Hill continued its pursuit to impose regulations on the digital asset market following the fall of prominent cryptocurrency trading platform FTX and the misuse of consumer assets, with Sens. Elizabeth Warren, D-Mass., and Roger Marshall, R-Kan., introducing new legislation to task federal agencies to oversee the asset class. The Digital Asset Anti-Money Laundering Act of 2022 emphasizes applying current anti-money laundering and financing terrorism prevention measures to the cryptocurrency industry. In addition to protecting consumers’ finances, the bill primarily seeks to halt the transfer of digital assets to adversarial countries sanctioned by the federal government. “Rogue nations, oligarchs, drug lords and human traffickers are using digital assets to launder billions in stolen funds, evade sanctions and finance terrorism,” Warren commented in the press release. “The crypto industry should follow common-sense rules like banks, brokers and Western Union, and this legislation would ensure the same standards apply across similar financial transactions.” The provisions in the bill target current loopholes by extending regulations imparted by the Bank Secrecy Act to digital asset companies and service providers, particularly those which host digital wallets that are used to store and transfer cryptocurrencies.
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