• Senator Elizabeth Warren is reintroducing a bill that would extend anti-money laundering (AML) regulations to decentralized autonomous organizations (DAOs) and decentralized finance (DeFi) platforms.
• The proposed legislation seeks to outlaw financial institutions‘ use of digital asset mixers, which are designed to mask blockchain data and prevent tracking.
• Warren’s efforts primarily focus on protecting individual investors and consumers from the potential risks and abuses associated with digital assets.
Senator Warren Reintroduces Crypto Regulation Bill
Senator Elizabeth Warren is pushing for the reintroduction of a bill that would extend anti-money laundering (AML) regulations to decentralized autonomous organizations (DAOs) and decentralized finance (DeFi) platforms.
Proposed Legislation Outlaws Digital Asset Mixers
The proposed legislation, which spans seven pages, seeks to outlaw financial institutions‘ use of digital asset mixers. These mixers, like Tornado Cash, are designed to mask blockchain data and prevent tracking. If passed, the bill would prohibit their use.
Warren’s Dedication To Crypto Legislation
Senator Warren’s efforts primarily focus on protecting individual investors and consumers from the potential risks and abuses associated with digital assets. She has raised concerns about the lack of regulatory oversight in the cryptocurrency space and called for greater transparency and accountability from companies involved in this market.
Warnings About AML Exemption For Decentralized Entities
At the Senate Banking Committee’s hearing on Feb. 14th, 2023 titled „Crypto Crash: Why Financial System Safeguards are Needed for Digital Assets,“ Warren argued that the crypto community is strong-hearted on decentralized entities running on code’s exemption from anti-money laundering (AML) requirements.
Conclusion
Sen. Elizabeth Warren is dedicated to protecting investors from potential risks in DeFi platforms by introducing legislation that extends anti-money laundering (AML) regulations across DAOs and DeFi platforms. Her warnings about AML exemption for decentralized entities serves as an important reminder for those involved in cryptocurrency trading.