US Senate introduces bill to tighten crypto regulation

Senators Elizabeth Warren and Roger W. Marshall introduced a bill to tighten money-laundering rules for cryptocurrency.

According to the document, KYC-procedures apply to wallet providers, miners, validators and other network participants. Financial institutions are prohibited from engaging with transaction-mixing services.

“The crypto industry must follow common-sense rules similar to banks, brokers or Western Union. This legislative initiative will apply the same standards to such financial transactions,” Warren said.

Senators proposed that the U.S. Treasury investigate crypto-related firms, in the same way regulators act toward banks. In addition, the powers of SEC and CFTC would be expanded.

“Following the September 11, 2001 attacks, our government carried out meaningful reforms that helped banks cut off wrongdoers from the U.S. financial system. Applying similar norms to cryptocurrency exchanges will prevent the use of digital assets in illegal activity, without creating restrictions for law-abiding citizens,” The Block wrote, citing a press release.

The senators also urge FinCEN to finish work on rules requiring banks and payment companies to report and keep records of counterparties and transactions related to non-custodial wallets, as well as addresses from sanctioned jurisdictions.

The bill introduces disclosure requirements for offshore operations involving digital assets of $10,000 or more. It is also proposed that cryptocurrency ATM operators identify customers and report to federal authorities the location and number of installed devices.

In November, Elizabeth Warren called for tightening regulation of cryptocurrencies, drawing parallels between FTX and Lehman Brothers.

Earlier, a member of the Senate Banking Committee also compared cryptocurrencies to the U.S. mortgage crisis. In July she to take a tougher stance against the industry amid problems with Celsius Network and several other companies.

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