The latest National Defense Authorization Act (NDAA) passed by the U.S. Congress has excluded two amendment proposals related to crafting crypto regulations around money laundering safeguards and reviewing financial institutions dealing with digital assets. The Chamber of Digital Commerce trade group called the removal of these rules in the reconciled House and Senate versions of the must-pass defense bill “a missed opportunity.”
The now-dropped Senate provisions had looked to establish thorough monitoring procedures assessing crypto anti-money laundering compliance among firms, as well as mandate a study on privacy coin use. Their dismissal comes as U.S. lawmakers voice renewed calls for clamping down on potential terrorist financing via cryptocurrencies.
Just this week, Senators Mitt Romney, Mark Warner and Jack Reed proposed separate legislation that would impose sanctions on institutions found supporting terrorist groups through crypto transactions. This follows leaked reports of the Palestinian militant organization Hamas purportedly receiving $90 million in crypto donations.
Cryptocurrency advocates and industry leaders widely criticized the failure to move forward with the practical regulatory guidance put forth in the Senate’s NDAA version. Without those guardrails now excluded from the 2024 defense bill, uncertainty persists around establishing clear standards for blockchain and crypto companies hoping to operate legally in the still-opaque U.S. market.
#regulation">cryptoregulations #policy #government #AML #bitcoin
