Senator Warren Introduces New Bill To Try And Crack Down On Crypto

Senator Elizabeth Warren is advocating for a legislative measure that many view as detrimental to the American public. Known for her criticism of both cryptocurrency and many major banks, she has presented a bill, termed the Digital Asset Anti-Money Laundering Act, aimed at addressing the alleged involvement of crypto in illicit financial activities.

Still a ways to go

On December 11th, five Democratic lawmakers, including three via the Senate Banking Committee which were Senators Raphael Warnock (D-GA), Laphonza Butler (D-CA), and Chris Van Hollen (D-MD), joined as co-sponsors. This committee holds considerable influence in shaping laws regulating a major economic sector in the United States, making their support significant.

Despite this, the aforementioned bill faces considerable obstacles to passing due to typical challenges in US governance, such as partisan politics, internal conflicts, and legislative gridlock. While this may be beneficial for the crypto industry, whose leaders have expressed strong opposition to the bill, it is also advantageous for the general public. Still, the proposed anti-money laundering act, despite its well-intentioned origins, raises concerns due to attached conditions.

The future is uncertain

It is worth noting that the bill put forth by Senator Warren, in its current form at least, is unlikely to gain approval for various reasons, including constitutional concerns raised by industry lobbyists. The legislation could be deemed unconstitutional. Additionally, US legislators, following the FTX and Terra incidents, are focused on implementing genuine regulatory reforms in the crypto space.

The bill, however, narrowly concentrates on surveillance issues, neglecting broader concerns in blockchain that contributed to events like the FTX fiasco. This narrow focus raises questions about the value of the bill and the time allocation factor of several lawmakers, considering other pressing matters.

In any case, the timing of the bill is noteworthy. Similar to another concerning congressional proposal, it appears to seek unconstitutional expansion of surveillance over various components of popular digital technologies.