- The US Senate has approved the 2024 National Defense Authorization Act (NDAA) which targets cryptocurrency trading institutions, crypto mixers, and crypto assets that increase anonymity.
- The NDAA was proposed by a bipartisan group of US senators and is considered one of the most significant congressional actions related to crypto assets to date.
- The legislation supports the fight against crypto mixers and crypto assets that enhance anonymity, and includes provisions taken from the financial innovation law and digital asset anti-money laundering laws.
The US Senate has passed the 2024 National Defense Authorization Act, a significant move targeting crypto trading institutions, crypto mixers, and crypto assets that enhance anonymity.
What Does the Defense Proposal Entail?
The NDAA was put forward by a bipartisan group of US senators, including Kirsten Gillibrand, Cynthia Lummis, Elizabeth Warren, and Roger Marshall. This move is seen as one of the most significant congressional actions related to cryptocurrencies to date. The legislation aims to regulate institutions that trade in cryptocurrencies and supports the fight against crypto mixers and crypto assets that enhance anonymity.
Provisions of the Act
The bill was prepared with provisions taken from the financial innovation law and digital asset anti-money laundering laws. The Treasury Department had pointed out the need to establish standards for the examination of crypto assets. The department emphasized the importance of combating crypto mixers, which are used to conceal funds.
Reactions to the Act
Republican Senator Lummis stated, “It is crucial to prevent illegal financing in the crypto asset industry, weed out bad actors, and ensure that crypto assets are not used to evade sanctions and finance terrorism.” It was also noted that it’s possible to add non-defense related amendments to the bill. Meanwhile, the House Agriculture Committee approved the financial innovation regulation for the 21st century, which will establish a federal regulatory framework for crypto. The Financial Services Committee also approved crypto regulation yesterday, with the majority of the committee, composed of Republican and Democratic representatives, voting in favor of the bill.
Conclusion
The approval of the NDAA by the US Senate marks a significant step in the regulation of cryptocurrencies. The legislation targets crypto trading institutions, crypto mixers, and crypto assets that enhance anonymity, reflecting a growing concern about the potential misuse of cryptocurrencies. The move is seen as one of the most significant congressional actions related to cryptocurrencies to date, and it could have far-reaching implications for the crypto industry.
