United States banking advocacy group, Bank Policy Institute, has backed the legislation of Senator Elizabeth Warrens, a vocal crypto critic, which calls for more transparency in digital assets to combat financial crime.
According to a July 28 Bloomberg report, Warren reintroduced the proposed bill titled ‘Digital Asset Anti-Money Laundering Act of 2023,’ on July 28. The bill had been initially introduced to the U.S. Senate in December 2022.
Warren made the announcement along with West Virginian Democrat Joe Manchin, Kansas’ Republican Roger Marshall and South Carolina Republican Lindsey Graham.
The Bank Policy Institute has shown its support for the bill, which demands more transparency in digital asset transactions in an effort to combat money-laundering and terrorism financing. It highlighted the existing anti-money laundering framework does not account for digital assets, noting:
“The existing anti-money laundering and Bank Secrecy Act framework must account for digital assets, and we look forward to engaging in this process to defend our nation’s financial system against illicit finance in all its forms.”
The bill, if passed, will require digital-asset wallet providers, miners and others that validate and secure transactions on a blockchain to keep records of their customers identities.
The Massachusetts Bankers Association, AARP, the National Consumer Law Center and the National Consumers League are among other supporters of the bill.
Tyler Winklevoss, co-founder of crypto exchange Gemini, took aim at the news in a July 28 tweet, suggesting that those opposed to Warren’s proposed bill are “doing the right thing.”
When you’ve made enemies with the bankers and Elizabeth Warren, you know you’re doing the right thing. https://t.co/w2WflrkJOu
— Tyler Winklevoss (@tyler) July 28, 2023
Warren initially introduced the bill at the Senate Banking Committee hearing “Crypto Crash: Why the FTX Bubble Burst and the Harm to Consumers”, in December 2022, where she declared that crypto should be held to the same regulations as banking institutions:
“Senator Marshall and I introduced a bipartisan bill today that requires crypto to follow the same money-laundering rules as every bank, every broker and Western Union all have to follow today.”