US Senator Elizabeth Warren will table a bipartisan Anti-Money Laundering (AML) bill covering DeFi and DAOs.
In the advancing journey of cryptocurrencies, the consequences of bad scenarios emerge. The FTX bankruptcy required solving many problems in the crypto industry and gaining regulatory clarity. The proliferation of money laundering and fraud, especially with crypto, has also brought legal processes to the table. Finally, US Senator Elizabeth Warren focused on a legal process on DeFi and DAO.
Senator Warren Mindful of DeFi and DAO
Warren made several statements at the Senate Banking Committee’s session titled “Crypto Crash” on February 14.
Addressing the proliferation of money laundering incidents in the crypto industry, Warren stated that he will reintroduce the Digital Asset Anti-Money Laundering Act of 2022, which he first presented on December 15, 2022.
Making statements on the subject, the senator said:
“In other words, they want a giant loophole in the law for DeFi so they can launder money when a drug lord or a terrorist pays them to do it.”
Addressing the problems caused by the legal loopholes and the slowness of the processes, Warren argued that initiatives like Tornado Cash would not be seen if the seven-draft bill was passed. The senator’s bill would be aimed at banning the illegal use of secrecy.
Additionally, the senator claimed that “major financial criminals love crypto” and that crypto is “the preferred method for international drug traffickers.”
The senator noted that current AML laws “do not cover large parts of the crypto industry” and underlined that he will soon introduce a bipartisan AML law.
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