US Treasury to develop AML standards for the crypto industry

The U.S. Senate approved amendments to the NDAA that tighten oversight of crypto mixers, anonymous coins, and institutions involved in digital-asset trading. As reported by USA Today.

The industry-focused provisions were authored by lawmakers from both parties: Cynthia Lummis, Elizabeth Warren, Kirsten Gillibrand and Roger Marshall.

The senators drew on the Digital Asset Anti-Money Laundering Act, which took effect in 2022, and the Responsible Financial Innovation Act. It is aimed at preventing events such as the collapse of FTX.

The amendment would require establishing standards for due diligence in digital-asset-related activities. The initiative aims to assess risks and confirm compliance with sanctions regimes and AML-legislation.

The measure would require the Treasury to study how to curb anonymous crypto transactions, including through the use of crypto mixers such as Tornado Cash.

Earlier in 2022, OFAC imposed sanctions on the aforementioned service. According to the Treasury, Tornado Cash failed to implement effective anti-money-laundering controls.

Earlier, a bipartisan group of senators introduced a bipartisan bill proposing the introduction of DeFi-protocols with stringent anti-money-laundering measures.