Senator Elizabeth Warren has announced an expanded coalition advocating for her Digital Asset Anti-Money Laundering Act, aimed to address issues like money-laundering, drug trafficking, and evasion of sanctions in the crypto world. Nine other American Senators have publicly pledged their support, as per the statement from Warren’s office.
The Senators backing Warren’s initiative include Democrats Gary Peters, Dick Durbin, Tina Smith, Jeanne Shaheen, Bob Casey, Richard Blumenthal, Michael Bennet, and Catherine Cortez Masto, as well as independent Senator Angus King. Notably, Senators Peters and Durbin respectively chair the Senate Homeland Security and Governmental Affairs Committee, and the Senate Judiciary Committee.
Senator Warren expressed pleasure at the support coming in for her legislative initiative, stating, “Our expanding coalition shows that Congress is ready to take action – our bipartisan bill is the toughest proposal on the table cracking down on crypto’s illicit use and giving regulators more tools in their toolbox.”
Organisations like Transparency International U.S., Global Financial Integrity, the National District Attorneys Association, the Major County Sheriffs of America, the National Consumer Law Center and the National Consumers League have also endorsed this bill.
First introduced by Senators Warren, Joe Manchin, Roger Marshall, and Lindsey Graham in July 2023, this bill seeks to tighten regulations around noncustodial digital wallets, augment Bank Secrecy Act duties, create an Anti-Money Laundering/Combating the Financing of Terrorism compliance examination, and take other legal steps to counter the unlawful usage of digital currencies.
Warren maintains that a “crypto tax gap” worth up to $50 billion is plaguing the country. She warns that if the tax policy isn’t immediately updated, the Internal Revenue Service and U.S. Treasury stand to lose approximately $1.5 billion in tax revenue in the 2024 fiscal year.