The US Senate Includes Cryptocurrency Provisions in Defense Bill

US Senate Adds Cryptocurrency Provisions to Defense Bill

Author: Kollen Post, DLNews; Translation: Song Xue, LianGuai

The US Senate is expected to pass legislation this week, including anti-money laundering provisions focusing on cryptocurrencies;

However, there are differences in Congress, and there is no guarantee that the bill will pass in the House of Representatives version.

Legislation focusing on cryptocurrencies as the main target for anti-money laundering has been included in the annual defense budget of the US Senate version.

• Struggle between Ripple and the SEC What Will Happen Next? Experts Assess 4 Possible Outcomes
• Analyzing the Current State of the Solana Ecosystem from On-chain Data
• Exploring Sidechains and Rollups Differences and Similarities in Architecture, Security Guarantees, and Scalability Performance

According to three informed sources, the Senate leadership has approved the amendment to the National Defense Authorization Act (NDAA), which will require federal regulatory agencies to develop new anti-money laundering guidelines.

The National Defense Authorization Act is a major legislation that must be passed and is currently being negotiated between the House of Representatives and the Senate.

In addition to requiring federal agencies (from the Drug Enforcement Administration to the Financial Crimes Enforcement Network) to provide reports, the bill also establishes new rules requiring encryption ATM to collect user identity information. Encryption ATM operators are also required to report the situation of all operating locations to the government.

The version of the National Defense Authorization Act that includes this amendment may be passed by the Senate, and the Senate is scheduled to vote on the bill this week. The provisions in the amendment will become one of the few provisions related to encryption that have passed both houses.

However, Congress is currently divided, with Republicans controlling the House of Representatives and Democrats controlling the Senate. This year’s defense bill has been affected by a particularly controversial tug-of-war: on July 14, the House of Representatives passed its own version of the bill with only the support of 4 Democratic congressmen.

The amendment itself is an interesting bipartisan project. Its sponsors include Republicans Cynthia Lummis from Wyoming and Roger Marshall from Kansas, as well as Democrats Kirsten Gillibrand from New York and Elizabeth Warren from Massachusetts.

The sponsors are known for their cross-party support and their relationship with cryptocurrencies. For most of the past decade, Warren has been one of the Senate’s most outspoken critics of cryptocurrencies. Meanwhile, Lummis was the first senator to disclose her cryptocurrency holdings and famously declared “God bless Bitcoin” on the Senate floor.

Lummis and Gillibrand have been working together on cryptocurrency issues for many years, especially on the “Responsible Financial Innovation Act.” Compared to Warren and Marshall’s earlier work on the “know your customer” rule, this legislation clearly supports cryptocurrencies more, leading many industry insiders to see it as an attack on core privacy provisions.

The authors of this amendment describe it as a combination of elements from these different legislations.

We will continue to update Blocking; if you have any questions or suggestions, please contact us!