In a significant display of bipartisan support, nine United States Senators have thrown their weight behind Senator Elizabeth Warren’s Digital Asset Anti-Money Laundering Act. This move is poised to bolster the legislative push to regulate and combat illicit activities within the cryptocurrency space.
Bipartisan support grows
Senator Elizabeth Warren’s initiative has gained backing from prominent Democratic Party Senators, including Gary Peters, Dick Durbin, Tina Smith, Jeanne Shaheen, Bob Casey, Richard Blumenthal, Michael Bennet, and Catherine Cortez Masto. Independent Senator Angus King has also joined this bipartisan coalition, bringing a diverse group of lawmakers under the same umbrella.
Notably, Gary Peters chairs the Senate Homeland Security and Governmental Affairs Committee, while Dick Durbin serves as the chair of the Senate Judiciary Committee. This backing signifies a united front in the Senate to tackle the challenges posed by digital assets and their potential use in money laundering activities.
A tough proposal to combat illicit use
Senator Warren, a vocal proponent of stricter cryptocurrency regulation, welcomed the support of her fellow Senators, highlighting the strength and determination of their coalition. She emphasized that their bipartisan bill stands as the most robust proposal in addressing the illicit use of cryptocurrencies while equipping regulators with essential tools to combat these activities effectively.
In addition to the Senators’ support, the Digital Asset Anti-Money Laundering Act has garnered endorsements from various organizations committed to financial transparency and accountability. Transparency International U.S., Global Financial Integrity, the National District Attorneys Association, the Major County Sheriffs of America, the National Consumer Law Center, and the National Consumers League have all thrown their support behind the legislation.
The Digital Asset Anti-Money Laundering Act, reintroduced in July 2023 by Senator Warren and co-sponsored by Senators Joe Manchin, Roger Marshall, and Lindsey Graham, seeks to address multiple aspects of cryptocurrency regulation. In its current form, the bill takes aim at non-custodial digital wallets, extends the responsibilities outlined in the Bank Secrecy Act, and establishes a framework for Anti-Money Laundering/Combating the Financing of Terrorism compliance examinations. These measures collectively aim to curtail the illicit use of digital currencies.
Closing the crypto tax gap
Senator Warren has been a vocal advocate for closing what she refers to as a “$50 billion crypto tax gap.” Her concern lies in the potential loss of tax revenue to the Internal Revenue Service (IRS) and the U.S. Treasury, projected to be around $1.5 billion for the 2024 financial year if tax policy updates are delayed. This underscores the urgency and importance of addressing cryptocurrency-related tax evasion and ensuring that all taxpayers fulfill their obligations.
