The National Defense Authorization Act (NDAA) was amended on Wednesday by a bipartisan group of senators, adding new anti-money laundering guidelines for the cryptocurrency sector.
Sens. Elizabeth Warren (D-Mass. ), Kirsten Gillibrand (D-N.Y.), Cynthia Lummis (R-Wyo.), and Roger Marshall (R-Kan.) have joined forces to introduce the proposal as an amendment to annual legislation that determines the budget for the country’s armed forces. The proposal aims to prevent the use of crypto assets in nefarious financial transactions.
According to Gillibrand’s office, the amendment would compel regulators to establish examination criteria for financial institutions involved in crypto asset activities and mandate that the Treasury Department make recommendations to Congress regarding crypto asset mixers and crypto assets that enhance anonymity.
For the sake of our economy and national security, it is imperative to forbid the use of cryptocurrencies for money laundering and criminal finance. According to a press release from Gillibrand, this amendment will compel federal regulators to implement stringent examination guidelines that will help stop the use of cryptocurrencies for unlawful purposes.
After the House passed the necessary legislation last week, the Senate started debating the yearly national defense policy package on Tuesday. Several amendments were introduced by conservative Republican members of the House, resulting in an exceptionally heated vote.
The bill Lummis and Gillibrand reintroduced earlier this month to establish a regulatory framework for crypto assets, as well as the bill Warren and Marshall introduced last year to include cryptocurrency in the anti-money laundering provisions, were the inspiration for the proposed amendment on cryptocurrencies.
While Warren and Marshall have been more skeptical of the rapidly expanding business and have pushed to increase the government’s regulatory authority over crypto, Lummis and Gillibrand have been perceived as being more supportive of the sector.
According to Marshall, the recently proposed bipartisan amendment to the NDAA will establish reasonable criteria to make sure that appropriate safeguards are in place as crypto use continues to increase globally.
