As the investors lament the loss of substantial funds in crypto investment, Massachusetts senator Elizabeth Warren has stepped up her game to intensify anti-crypto movements. For years, Senator Warren has remained at the forefront of safeguarding the crypto and finance industry from exploitation.
Her commitment to combating financial crimes has inspired other policymakers to join force in the long waging war to ec4bring down criminals. In a Monday update, Senator Warren was pleased to state that five senators have agreed to support the Digital Asset Anti-Money Laundering Act that addresses cryptocurrency risks.
US Policy Makers Seeks to Regulate Crypto Asset
Senator Warren formulated the bill in collaboration with other regulators. A review of the proposed legislation demonstrated that Senator Warren and her colleague seek to regulate the crypto industry adequately.
Therefore, to ensure that the crypto sector is safe and secure, Warren and her ally suggested extending the Bank Secrecy Act to the digital industry. This development indicates that if Senator Warren’s bill is approved, all the crypto miners, digital assets service providers (DASPs), and token issuers operating in the US must comply with the Know Your Customers (KYC) requirements.
The proposal has undergone various regulatory review stages and has obliged Senator Warren to work closely with other lawmakers to persuade the Biden administration on the need to crack down illicit crypto activities.
In her ongoing campaign to convict the bad players looming in the crypto sector, other policymakers supported the Warren bill, including Senator Raphael Warnock, D-Md, Laphonza Butler. Also the Warren proposal for regulating digital assets was supported by Chris Van Hollen.
In a recent engagement with the Senate Banking Committee, the senators reviewed the US banking and financial affairs. The meeting also discussed the impact of emerging technologies such as crypto and blockchain on the financial industry.
Senator Elizabeth Warren’s Bill Receives Support from Other Law Makers
The committee deliberated on the policies that would support the crypto industry’s growth. After meaningful discussion with critical policymakers and top-level executives in the financial sector, Senator John Hickenlooper, D-N.M., Ben Ray Lujan, and D-Colo agreed to support Warren’s bill.
A statement by Van Hollen revealed that inadequate regulation for crypto assets exposes America to potential risks. The Maryland Senator argued that following the recent turn of events where crypto has been used as an avenue for financing terrorist activities, drug trafficking, and tax breakers, it was important for the US to step up and enforce basic laws that address unlawful activities.
Hollen admitted that with the ever-evolving nature of the crypto industry, it was important to enforce transparent crypto regulations. This development protects traditional banks and American investors from exploitative business activities.
The 64-year-old politician admitted that the rise of unlawful use of crypto has obliged the White House to focus on enforcing Anti-money laundering (AML) regulations and levying measures that prevent terrorist financing.
Importance of Comprehensive Regulation for Crypto Assets
Hollen recognized the pivotal role of Senator Warren in pushing for the implementation of new regulations for crypto assets. The anti-crypto Senator has regularly presented the bill in congressional hearings for the past few months.
Her intense campaigns have attracted the attention of other regulatory agencies. A few weeks ago, the Treasury Department granted the members of Congress legal power to bring down criminals in the crypto industry.
The Treasury orders were issued when Patrick McHenry, a House Financial Service Committee member, urged the Biden Administration to enforce the AML requirements for crypto assets. McHenry announced even though he would be seeking reelection in the next general election, it was important to implement advanced crypto regulations.
In his address, McHenry reviewed a bill that proposed regulating the stablecoins by the federal government. The proposed bills for crypto assets by Senator Warren and other bipartisan members created heated debates among market critics.
A recent X post demonstrated that US lawmakers focused more on apprehending bad actors rather than implementing effective strategies to support the growth of the digital industry.