According to recent reports, Massachusetts Senator Elizabeth Warren is pushing the Senate to ban crypto wallets. She is again back with an Anti-Money Laundering act which would make it mostly illegal for you to use your own crypto wallet. It is not good news for crypto investors as well as the industry as we all are ware by now that exchanges and even banks cannot be trusted blindly.
Elizabeth planning to make Americans more dependent on big banks
Elizabeth Warren, a Massachusetts Senator, is again smearing the crypto industry and trying to make Americans mostly dependent on big banks, which is not good at all.
In Feb 2023, Warren announced that she would reintroduce the Digital Asset Anti-Money Laundering Act, a proposal which had no future when she first introduced it with Kansas Senator Roger Marshall last year in December. While the proposal’s main aim was to protect Americans from scams and money frauds, it was more likely to drive crypto business overseas and weaken consumer choice.
The proposal would prohibit using digital asset mixers and require self-hosted wallets- like the ones you keep on your cell phone – along with miners and validators to have AML policies. If we look at the crypto industry, many entities would not be able to impose such requirements, meaning they would simply be required to shut down or stop giving services to Americans.
Simply put, the proposal is the wrong one at a good time. Money laundering and scams have recently become quite common in the crypto industry, demonstrating the need for some crypto rules and regulations. However, the bill aims to smear a campaign against the crypto industry that would make Americans more dependent on banks. It can be understood that she considers crypto tokens a method of choice for international drug traffickers, which is very wrong.
Bill is very harsh on DeFi
As you know, Massachusetts Senator Elizabeth Warren is pushing the Senate to ban crypto wallets by reintroducing the Digital Asset Anti-Money Laundering Act with a new name and some changes. The bill is particularly harsh on DeFi, also known as Decentralized Finance, including noncustodial ones, requiring exchanges to record the personal information of their users and submit it to the government without any warranty or cause.
Besides, companies developing the software would also require to register as money service providers, adopt Anti-Money Laundering policies and report customers to the Financial Crimes Enforcement Network.
What are your thoughts on Elizabeth Warren’s new Anti-Money Laundering act? Do you think it also has no future like the Digital Asset Anti-Money Laundering Act? Let us know in the comments below. And if you found our content informative, share it with your family and friends.
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