Bipartisan bill proposes extending money laundering rules to crypto
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The proposed bipartisan bill aims to extend anti-money laundering rules to crypto providers by designating them as financial institutions under the Bank Secrecy Act.
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The bill would require crypto providers like unhosted wallet providers, miners, and decentralized finance protocols to comply with know-your-customer and transaction monitoring rules.
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Supporters argue the bill is needed to prevent use of crypto for illegal purposes but critics say it could kill decentralized finance and impose unrealistic requirements.
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The bill could lead to redundancies with existing state regulations of crypto businesses as money services businesses according to some legal experts.
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With lawmakers focused on other issues, it's uncertain if the bill will advance, especially in an election year, but it signals continued pressure to regulate crypto.