Senate Passes Bill Targeting Crypto Mixers, China Investments
30. Juli 2023
• The US Senate passed the 2024 National Defense Authorization Act (NDAA) worth $886 billion on July 27, which includes a provision targeting crypto mixers and institutions engaging in crypto trading.
• The amendment was created with provisions taken from the Digital Asset Anti-Money Laundering Act and the Responsible Financial Innovation Act.
• The amendment requires establishing examination standards for crypto to assess risk, comply with sanctions and money laundering laws, and study methods to crack down on anonymous cryptocurrency transactions.
US Senate Passes National Defense Bill Targeting Crypto Mixers
The US Senate has approved the 2024 National Defense Authorization Act (NDAA), worth $886 billion on July 27. The bill includes an amendment that targets crypto mixers, anonymity-enhancing coins and institutions engaging in crypto trading.
Provisions of the Amendment
The amendment is comprised of provisions taken from two separate acts: the Digital Asset Anti-Money Laundering Act introduced in 2022, and the Responsible Financial Innovation Act aimed at preventing another FTX-style event from happening within the industry. It requires establishing examination standards for cryptocurrencies to assess risk, ensure compliance with related sanctions and money laundering laws, as well as studying methods to crack down on anonymous cryptocurrency transactions like those utilizing crypto mixers such as Tornado Cash.
Sanctions Against Crypto Mixer Tornado Cash
In 2022, Treasury issued sanctions against Tornado Cash—a popular crypto mixer used by malicious actors to hide ill-gotten gains from hacks or exploits—for failing to impose controls which would disallow money laundering activity.
Additional Amendments in NDAA
Apart from this anti-money laundering measure, other amendments included in the NDAA require companies in the U.S. to disclose investments made into China.
The passing of this bill shows that lawmakers are ramping up efforts to regulate cryptocurrencies while attempting to protect consumers from potential risks associated with them.