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Several top U.S. Senators have thrown their weight behind a significant legislative push championed by Senator Elizabeth Warren. The legislation, known as the Digital Asset Anti-Money Laundering Act, seeks to enhance the oversight of the evolving digital currency industry.
Warren's office recently confirmed that eight Democrats, namely Catherine Cortez Masto, Bob Casey, Gary Peters, Michael Bennet, Richard Blumenthal, Tina Smith, Jeanne Shaheen, and Dick Durbin, have joined the effort. Additionally, independent Senator Angus King also expressed his backing. Notably, Peters leads the Senate Homeland Security and Governmental Affairs Committee, while Durbin is at the helm of the Senate Judiciary Committee.
The thrust of their support lies in addressing the challenges brought about by the rapidly expanding digital currency market. Warren underscored the increasing backing by explaining that the bill signifies Congress's dedication to addressing potential pitfalls of the digital currency industry and providing regulatory bodies with ample authority.
Organizations, too, have vouched for the act's objectives. These include the Major County Sheriffs of America, National Consumer Law Center, Transparency International U.S., the National Consumers League, National District Attorneys Association, and Global Financial Integrity. Their endorsement marks the bill's potential to implement concrete measures against illegal activities in the digital currency space.
The act, which was reintroduced by Warren and Senators Joe Manchin, Roger Marshall, and Lindsey Graham in July 2023, aims to strengthen regulations concerning digital wallets, broaden the scope of the Bank Secrecy Act, and establish stringent legal frameworks to counteract the malicious use of digital assets.
Moreover, Warren expressed concerns about a potential $50 billion deficit in crypto tax. The U.S. Treasury, coupled with the Internal Revenue Service, could potentially lose an estimated $1.5 billion in tax collections for the financial year 2024 if prompt action isn't taken to revamp the existing tax structure related to digital assets.
