BPI Supports Elizabeth Warren’s Push for Stricter Crypto Rules
A recent report stated that Senator Elizabeth Warren’s recent push for stricter regulations on the crypto industry had been publicly supported by the BPI (Bank Policy Institute), an agency that always opposed Warren on multiple topics in the past.
According to the report, the BPI is an agency that supports the United States banking industry. The agency recently publicized its support for the advocacy of Senator Elizabeth and requested the US government to put more regulatory pressure on the crypto space.
For a while now, Warren, coupled with three other senators, had been pushing for strict crypto rules in the country. However, the group recently called on the government to implement the Digital Asset Anti-Money Laundering Act. The Act focuses on enforcing tougher regulations in fighting terrorism financing and money laundering in the crypto space.
The bill was presented by Elizabeth Warren, Republicans Lindsey Graham and Roher Marshall, and Democrat Joe Manchin on Friday. Interestingly, the BPI, who is used to criticizing Warren’s takes, agreed with her on this issue as it voiced out in a report on Friday that it backs the bipartisan rule.
In the report, the agency stated that the current framework for AML (anti-money laundering) and Bank Secrecy Act should be reformed to oversee cryptocurrency. It added that the agency is eager to protect the financial economy of the United States against any form of illegal finance.
Crypto Experts Express Different Views On the
Furthermore, if the proposed bill is approved, all crypto-related ervice providers, including miners, wallet issuers, exchanges, and other crypto validators, keep private details and transaction records of their consumers.
Coupled with the identity tracking of customers, the rule aimed to urge the Department of the US Treasury, Commodity FuturesTrading Commission, Securities and Exchange Commission, and other relevant to a vial regulators to create new procedures to examine if an entity is in proper compliance with the terrorism financing and anti-money laundering legislation requirements.
Meanwhile, the BPI is not the only supporter of the bill, the National Consumer League, the National Consumer Law Center, AARP, and the Bankers Association of Massachusetts are among the few that publicize their support for the proposed bill.
However, the bill did not go without criticism. According to the report, the CEO of the Gemini cryptocurrency exchange, Tyler Winklevoss, condemned the proposed legislation in his recent tweet on the Twitter platform. He reportedly claimed that people who oppose the proposed regulation are doing the right thing.
The SEC Also Support The New Bill
Meanwhile, the report showed that Warren had first presented the bill in December last year to the United States Senate as she claimed that the anti-money laundering regulations do not do justice to all aspects of crypto innovation.
In addition, in February, Warren Elizabeth suggested that the government should subject the crypto industry to the same set of rules that regulates the traditional banking firms, according to the report. She claimed that many aspects of the digital monetary system are similar to the conventional monetary system.
Also, Senator Warren criticized the immunities that blockchain entities have to be working with code. She claimed such exemptions create loopholes that facilitate money laundering and terrorism financing for hackers and bad actors to exploit.
Furthermore, the chairman of the US SEC, Gary Gensler, also encourages the rule as he often criticizes the crypto market. In his recent speech, the chair expressed his concerns regarding the rampant scamming activities that plague the crypto industry, stating that the rate of crime is far too high.
He added that cryptocurrency investors should have the mindset that the securities laws would protect them as the rules are applicable to some crypto assets. Gensler continued that investors in the US are not getting fair and complete disclosures from crypto platforms as the platforms are running operations that Nasdaq or the New York Stock are prohibited from doing.
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