Elizabeth Warren has introduced an Anti-Money Laundering act would make it mostly illegal for you to use your own crypto wallet.
Senator Elizabeth Warren’s proposal to reintroduce the Digital Assets Anti-Money Laundering Act has been criticized for its potential to harm the cryptocurrency industry and limit consumer choice.
The bill would prohibit the use of digital asset mixers and require self-hosted wallets, miners, and validators to have Anti-Money Laundering policies. This would result in many entities needing to shut down or stop servicing American users as they may not be able to meet the requirements.
The bill also requires platforms to record personal information of users and submit it to the government without a warrant or probable cause, which has been criticized as being harsh on decentralized finance (DeFi). Furthermore, companies that develop software would be required to register as money service providers and report customers to the Financial Crimes Enforcement Network.
Leaders in the Cryptocurrency Industry argue that the bill is designed to hobble the crypto industry and crypto businesses with an unreasonable regulatory burden, rather than protect consumers.
The bill could force many businesses to either close their doors or leave the United States, giving Americans few legal opportunities to participate in the industry, and reducing competition in banking and other financial services.
Additionally, the bill overlooks the fact that blockchain and related technologies are not the same as cryptocurrency and not all cryptocurrencies are openly traded or usable for purchases.
It is also argue that the bill could result in an increase in criminal activity by driving legitimate users and businesses away and pushing the industry underground, much like how alcohol prohibition in the 1920s strengthened organized crime.
The Financial Action Task Force recommended that all crypto transactions be subject to scrutiny, regardless of risk factors. However, other countries are not taking such a Draconian approach. The bill has been criticized as a smear campaign against the industry that would make Americans more dependent on traditional banks, rather than promote the public good.
Elizabeth Warren attacks Crypto
In Summary Elizabeth Warren’s proposed Anti-Money Laundering Act has received criticism for potentially harming the cryptocurrency industry and limiting consumer choice. The bill would impose strict regulations on digital asset mixers, self-hosted wallets, miners, and validators, potentially leading to many entities closing their doors or leaving the United States.