Experts Call Crypto Bill Presented By US Lawmakers As “Most Controversial”

US Law Makers Present ‘Crypto Bill’

Two of the prominent Senators from the US Senate namely Elizabeth Warren and Roger Marshall, have introduced a crypto bill.

The bill, which is called the ‘Digital Asset Anti-Money Laundering Act, 2022’ has been moved before the Senate for debate and approval.

According to the bill movers, the proposed legislation would ensure the prevention of money laundering and corruption in the digital asset industry.

In this connection, Senator Warren posted a tweet in which she informed that through the legislation gaps in the industry will be identified.

She stated that the crypto industry has been misused by drug lords, cyber criminals, terrorists, corrupt, money launders, and tax avoiders.

She further said on Twitter that now she is holding a ‘bipartisan’ bill that is comprehensive in the sense of addressing these issues.

Legislation Contains Wider Scope

The proposed legislation seems to have been drafted so as to give the regulators wider scope over the crypto industry.

For instance, the legislation gives Financial Crimes Enforcement Network (FinCEN) power to assign digital wallet providers, transaction validators, miners, network participants, etc.

It has been argued by a crypto analytical firm called Coin Center that the proposed legislation of Senator Warren is overstretching.

Coin Center suggested that under proposed legislation software/network technicians and developers would be assisted in obtaining registration of ‘financial institution’.

Ban on the Use of Privacy Tools

Resultantly, software and network technicians/developers being ‘financial institutions’ would be required to keep records of information belonging to users/transaction senders.

In addition, the proposed legislation will debar users from sending transactions on the basis of ‘privacy tools’. These tools would include, for example, Tornado Cash and privacy tokens like monero or zcash, etc.

This restriction on the use of privacy tools is irrespective of the fact whether the transaction is legitimate or otherwise.

The Senators and Their Proposed Legislation Receive Heavy Criticism

Senator Warren in particular was however heavily criticized by a large number of people on social media platforms, including Twitter.

Senator Cynthia Lummis i.e. a Bitcoin supporter posted a tweet in which she criticized Senator Warren’s crypto bill.

She commented ‘what is the need of asking open source developers to implement AML/KYC standards while developing hardware wallets and node software?”.

J.W. Verret, who teaches Blockchain law, commented that the bill would certainly help criminals who wouldn’t need to do the research. He claimed that criminals could easily identify and earmark their targets through the law.

The Professor also pointed out that the proposed bill is in contrast with what Treasury had promised i.e. discourage illicit use.

Communication Director of Coin Center, Neeraj Agarwal, suggested that the ‘Senators’ bill is mayhem’.

Agarwal also commented that the FTX calamity was unstoppable and nobody could do anything to save it when a crisis emerged from the inside.

He added that the proposed legislation would not be helpful in preventing any calamities like FTX in the future.

Proposal Infringes Privacy and Personal Freedom

In response to the Senators’ crypto bill, Agarwal posted a tweet in which he also lambasted crypto legislation. He said that the Senators concerned have, through the law, attacked the crypto industry.

Agarwal emphasized that the proposal is no less than a personal attack on developers’ and technicians’ freedoms and contrary to users’ privacy.

He also claimed that the proposed ‘Digital Asset Anti-Money Laundering Act’ is flawed and infringes on the fundamental right of the crypto community’s freedom.

It is to be kept in mind that US regulators have always been against the usage of cryptocurrencies. This is because cryptocurrencies pose a threat to the country’s economy.

However, the real concern is the dollar losing its strength against the cryptocurrencies. This would eventually strip the USD of being the largest reserve currency in the world, which the US does not want.

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