Crypto Clampdown Act: Unmasking America's Regulatory Battle

The recent development involves the enactment of the Digital Asset Anti-Money Laundering Act, representing yet another effort to restrict the utilization of cryptocurrencies within the United States.

On December 11, the bill garnered support from an additional five Senators, notably including three members affiliated with the Banking Committee, a move that could be anticipated.

Evan Van Ness, a proponent of cryptocurrencies, compiled a roster of Senators alleging they were "incentivized by financial institutions to endorse Elizabeth Warren's anti-crypto legislation."

A list of US senators paid off by the banks to cosponsor Elizabeth Warren's anti-crypto bill

* @RaphaelWarnock (D-GA)
* @LaphonzaB (D-CA)
* @ChrisVanHollen (D-MD)
* @Hickenlooper (D-CO)
* @benraylujan (D-NM)
* @RogerMarshallMD (R-KS)
* @JoeManchinWV (D-WV)

List continues ????

— Evan Van Ness ???? (@evan_van_ness) December 11, 2023

In a seemingly corroborative statement, Warren remarked, "While my alignment with the CEOs of multi-billion dollar banks on banking policy is typically scarce, advocating for the enforcement of anti-money laundering regulations in the crypto sphere for the sake of national security is a matter of common sense and paramount importance."

Prospective Prohibitions on Bitcoin in the United States

Neeraj Agrawal, representing the cryptocurrency policy think tank Coin Center, denounced the bill as a "direct assault on technological advancement and a blatant infringement on our personal privacy and autonomy."

Although acknowledging the bill's potential efficacy in combating money laundering and terrorism financing, Agrawal expressed reservations, asserting that the bill signifies a rejection of liberal values, steering towards the surveillance and control favored by authoritarian figures like Vladimir Putin, Xi Jinping, and Kim Jong-un.

The Digital Asset Anti-Money Laundering Act is a direct attack on technological progress and also a direct attack on our personal privacy and autonomy.

Make no mistake, while proposed as a solution to potential money laundering and terrorist financing, the bill is in fact a… pic.twitter.com/8oID1wECGL

— Neeraj K. Agrawal (@NeerajKA) December 11, 2023

The bill's objective is to fortify America's anti-money laundering regulations by categorizing crypto entities, miners, and applications, including non-custodial wallets, on par with financial institutions under the Bank Secrecy Act.

Alex Thorn, the Head of Research at Galaxy, contended that the bill essentially equates to a prohibition of BTC in the United States, emphasizing the impossibility for non-custodial open-source software, such as Bitcoin Core, to adhere to the stringent compliance requirements.

According to Thorn, these regulations serve as an effective ban on cryptocurrencies in the American market, eroding the fundamental innovation of peer-to-peer digital cash.

Maintain Composure for Now

Nevertheless, Tom Dunleavy, a partner at MV Capital, brought attention to the fact that a substantial majority of bills sponsored by Senator Warren in recent years have failed to secure passage in Congress.

Jameson Lopp, a trailblazer in the Bitcoin space, underscored that over the course of Warren's decade-long tenure as a senator, she has introduced a total of 315 bills, with only one successfully enacted into law, yielding a meager success rate of 0.32%.

Warren sponsored:
36 bills in the 118th congress (2023-24). 0 passed.
103 bills in the 117th congress (2021-22). 0 passed.
98 bills in the 116th Congress (2019-20). 0 passed.
80 bills in the 115th congress(2017-18). 0 passed.
27 bills in the 114th congress. (2015-16). 0 passed. https://t.co/Tyyjw7F7V9

— Tom Dunleavy (@dunleavy89) December 11, 2023

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