Sen. Warren to Reintroduce AML Bill to Cover DeFi and DAOs
• Senator Elizabeth Warren has promised to reintroduce the Digital Asset Anti-Money Laundering Act of 2022.
• The new bill will cover decentralized entities like decentralized organizations (DAOs) and decentralized finance (DeFi) protocols.
• This is due to the recent hostile moves by several regulatory authorities in the US and Senator’s belief that AML policies must cover the broader crypto market.
Sen. Warren to Reintroduce AML Bill
Senator Elizabeth Warren has promised to reintroduce the Digital Asset Anti-Money Laundering Act of 2022 that she first introduced on Dec. 15, 2022, with an aim to extend it to DeFi and DAOs.
Recent Regulatory Actions
The past few weeks have seen some hostile moves by several regulatory authorities in the US including the recent $30 million imposed on Kraken forcing it to shut down its crypto-staking product, as well as the issue of SEC accusing Paxos Trust of issuing unregistered security, Binance USD (BUSD). These events have sparked fears of a potential crypto crackdown.
Amending Existing Policies
Senator Elizabeth Warren believes that there is need for amending existing AML laws so as to cover the broader crypto market and this is why she wants DeFi and DAOs included in such policies. She noted during a Senate Banking Committee hearing titled ‚Crypto Crash: Why Financial System Safeguards are Needed for Digital Assets‘ that some people want a giant loophole for DeFi written into law so they can launder money whenever they please without consequences.
Significance Of The Bill
The new bill if passed will be significant in regulating all aspects of digital assets especially when it comes to preventing money laundering activities within DeFi and DAO ecosystems. It will also ensure that everyone adheres to set rules regarding anti-money laundering activities in order not only protect investors but also promote trust within these sectors.
It remains unclear whether or not Sen. Warren’s proposed bill will pass but at least her efforts could help clear up confusion about how existing regulations may or may not apply to different types of digital assets and their use cases .