Senator Warren Presents Bill on Monitoring Crypto Industry

Right move at the right time?

A new bill, which disclosed new regulatory blueprints against money laundering via crypto has been introduced.

Senator Elizabeth Warren (D-Mass), and Roger Marshall (R-Kan), presented the “Digital Asset Anti-Money Laundering Act of 2022,” that underlines the execution of new anti-money laundering and financing terrorism prevention actions to the crypto industry while reclassifying crypto firms as either miners or wallet service providers. 

Senator Warren stated in a press release: “Rogue nations, oligarchs, drug lords and human traffickers are using digital assets to launder billions in stolen funds, evade sanctions and finance terrorism.”

“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,”she added. 

The former CEO and co-founder Sam Bankman-Fried of bankrupt crypto exchange FTX, was arrested on December 12 at 6:00 p.m. at his home in Bahamas by the Royal Bahamas Police Force. He was also officially included as a witness for this week’s congressional hearing on December 13 at 10:00 a.m. 

As per media reports, the 30-year-old FTX’s SBF is accused by the Department of Justice of multiple crimes, including fraud, conspiracy, money laundering among others. Additionally, the U.S. Securities and Exchange Commission (SEC) alleged that he “defrauded his investors.” The Commodity Futures Trading Commission (CFTC) have imposed charges over fraud accusations against him.

The Senator said in a Senate Banking Committee hearing, “It is time for Congress to make the crypto industry follow the same money-laundering rules as everyone else.”

‘Star’-Led ‘Dust 

According to the Washington Post, FTX’s customers are laying a class-action lawsuit against Kevin O’leary and 10 FTX celebrity endorsers, which include Naomi Osaka, Larry David and Tom Brady, for pushing users into poorly made deals. “Shark Tank” jury member and entrepreneur Kevin was paid $15 million for promoting FTX.

Washington Post also reported that the other witnesses, such as, Hillary Allen, an American law professor of banking and securities and regulations, Ben McKenzie Schenkkan, an actor and famous T.V. star for his role in “Gotham” and “The O.C.” Further, the Senate Banking Committee Chair Sherrod Brown (D-Ohio) blamed the crypto industry to be “easy, too easy” for corruption.

Roger Marshall stated “Following the September 11, 2001 terrorist attacks, our government enacted meaningful reforms that helped the banks cut off bad actors’ from America’s financial system.” 

“Applying these similar policies to cryptocurrency exchanges will prevent digital assets from being abused to finance illegal activities without limiting law-abiding American citizens’ access,” he added.

Nancy J. Allen is a crypto enthusiast and believes that cryptocurrencies inspire people to be their own banks and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning.

Latest posts by Nancy J. Allen (see all)