U.S. Senator Elizabeth Warren announced that her proposed Digital Asset Anti-Money Laundering Act has received more bipartisan support. New co-sponsors include three members of the Senate Banking, Housing and Urban Affairs Committee: Sens. Raphael Warnock (D-Ga.), Laphonza Butler (D-Calif.) and Chris Van Hollen (D-Md.), as well as Sens. John Hickenlooper and Ben Ray Luján.
The bill aims to mitigate the illicit financial risks posed by cryptocurrencies by closing loopholes and enabling the digital asset ecosystem to better comply with the Anti-Money Laundering and Countering the Financing of Terrorism (AMF/CFT) framework. These include expanding Bank Secrecy Act (BSA) responsibilities to include imposing know-your-customer (KYC) requirements on digital asset wallet providers, miners, validators and other network participants. The bill also directs the Financial Crimes Enforcement Network (FinCEN) to issue guidance to mitigate the risks of transactions with digital assets that are anonymized using digital asset mixers and other anonymity-enhancing technologies, and to strengthen enforcement of BSA compliance.