United States Senate’s Defense Bill Includes Measures Against Crypto Mixers
An amendment in the bill tightens oversight on institutions engaging in crypto trading.
On the evening of July 27, the U.S. Senate approved the $886 billion 2024 National Defense Authorization Act (NDAA).
The measure has a clause that targets institutions trading in cryptocurrencies, cryptocurrency mixers, and coins that increase anonymity.
The NDAA is a ruling that aids in approving how the nation’s defense department can use government resources. A group of senators, including Cynthia Lummis, Elizabeth Warren, Kirsten Gillibrand, and Roger Marshall, introduced a crypto-related amendment to the bill.
The change was developed using provisions from two laws: the Responsible Financial Innovation Act, which intends to provide safeguards to stop future FTX-like events inside the industry, and the Digital Asset Anti-Money Laundering Act, first presented in 2022.
The amendment will particularly call for the creation of cryptography examination criteria. This would aid in risk assessment and ensure companies abide by relevant money laundering and acceptable laws.
Additionally, it forces the Treasury Department to research to crack down on anonymous cryptocurrency transactions. This involves using cryptocurrency mixers to conceal transactions, such as Tornado Cash.
Sanctions were imposed on the cryptocurrency mixer Tornado Cash by the U.S. Treasury Department in 2022, making residents ineligible to use it.
While the mixer was intended to help users anonymize their cryptocurrency transactions, bad actors frequently used it to protect illicitly obtained cryptocurrency from hackers and vulnerabilities.
According to the Treasury Department, the mixer allegedly failed to enact safeguards forbidding money laundering by criminals in the area.
The NDAA also contains a change that mandates that American businesses disclose their investments in China. Senator Bob Casey of the United States claimed that the government needs this information to know how much “critical technology” is given to their “enemies.”
