Wall Street banks and Senator Elizabeth Warren have finally found something they can agree on: the need to crack down on crypto.
(Bloomberg) — Wall Street banks and Senator Elizabeth Warren have finally found something they can agree on: the need to crack down on crypto.
The Bank Policy Institute, a trade group for lenders that Warren often blasts, threw its weight behind bipartisan legislation that the Massachusetts Democrat and three of her Senate colleagues reintroduced this week. The bill aims to force the crypto industry to comply with tougher rules for combating money laundering and terrorism financing.
“The existing anti-money laundering and Bank Secrecy Act framework must account for digital assets, and we look forward to engaging in this process to defend our nation’s financial system against illicit finance in all its forms,” BPI said in a statement.
Warren, West Virginia Democrat Joe Manchin, as well as Republicans Roger Marshall of Kansas and Lindsey Graham of South Carolina announced the bill’s reintroduction Friday.
The measure would require digital-asset wallet providers, miners and others that validate and secure transactions on a blockchain to keep tabs of their customers’ identities. It would also direct the Treasury Department, Securities and Exchange Commission and Commodity Futures Trading Commission to set new examination processes for crypto companies to monitor compliance with anti-money laundering and terrorism financing requirements.
Since the 2008 financial crisis, Warren has frequently drawn the ire of financial institutions for her push for stricter regulations. More recently, she’s shifted her focus to digital-asset firms, which traditional banks also say need tougher oversight.
The bill’s backers also include the Massachusetts Bankers Association, AARP, the National Consumer Law Center and the National Consumers League.
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