Tensions Increase as US Legislators Attempt to Include Crypto Elements in Year-end Legislation

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Last Updated on December 3, 2023 by Bitfinsider

US senators are still pushing to include crypto-related legislation in year-end legislative packages, however industry sources predict more movement in 2024.

While Republican House Speaker Mike Johnson’s approach to a funding bill may mean that there would be no larger “omnibus” bill at the end of the year into which various initiatives might be dumped, some crypto elements may still end up in other end-of-year bills.

Sens. Cynthia Lummis, R-Wyo., Kirsten Gillibrand, D-N.Y., Roger Marshall, R-Kan., and Elizabeth Warren, D-Mass., could introduce an amendment to the National Defense Authorization Act that would require regulators to establish examination standards for financial institutions engaged in crypto activities, as well as require the Treasury Department to make recommendations to Congress on crypto mixers.

Senator Lummis told reporters at the Blockchain Association Policy Summit on Thursday that the amendment is still in the works.

“I hear rumors, and that’s all they are, that it may get caught up into some other negotiations and I don’t know whether it’s going to survive,” Lummis was quoted as saying. “But we should know more early next week.”

According to Cody Carbone, vice president of policy at the Chamber of Digital Commerce, the proposed modification is acceptable to the crypto business. The crypto sector is less enthusiastic about a bill introduced by Senator Elizabeth Warren that attempts to reduce the use of cryptocurrency for money laundering and sanctions evasion, in part by expanding know-your-customer standards to miners and wallet providers.

“We just don’t want to create new standards and burdens on some of these players in the ecosystem that aren’t relevant, which is what Warren’s bill would do for miners and validators who don’t work with customers,” said Carbone. “So we think this is a good compromise.”

The Financial Technology Protection Act, which creates a working group with representation from many government agencies, including Treasury, to combat terrorism and illicit finance, is one item Carbone said he would like to see added to the NDAA.

“We’re hopeful and we’ve been advocating for that to get added,” Carbone went on to say.

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