Senators Call for Digital Currency Oversight in Anti-Money Laundering Bill

A pair of US senators have filed a new anti-money laundering bill aimed at beefing up oversight of digital currency activities.

AccessTimeIconMay 31, 2017 at 3:30 p.m. UTC
Updated Aug 18, 2021 at 6:14 p.m. UTC

Presented By Icon

Election 2024 coverage presented by

Stand with crypto

A pair of US senators have filed a new anti-money laundering bill aimed at beefing up oversight of digital currency activities.

The bill – the Combating Money Laundering, Terrorist Financing and Counterfeiting Act of 2017 – was filed last week by Senator Chuck Grassley of Iowa and Senator Diane Feinstein of California.

  • Bitcoin Mining in the U.S. Will Become 'a Lot More Decentralized': Core Scientific CEO
    13:18
    Bitcoin Mining in the U.S. Will Become 'a Lot More Decentralized': Core Scientific CEO
  • Binance to Discontinue Its Nigerian Naira Services After Government Scrutiny
    05:10
    Binance to Discontinue Its Nigerian Naira Services After Government Scrutiny
  • The first video of the year 2024
    04:07
    The first video of the year 2024
  • The last regression video of the year 3.67.0
    40:07
    The last regression video of the year 3.67.0
  • Among the changes, according to a draft text of the bill, are additions to definitions for "financial institutions", which, if the bill is passed, would include "any digital currency exchanger or tumbler". Additionally, the bill clarifies that any "issuer, redeemer or cashier" of a "digital currency" is also covered.

    While not explicitly spelled out as such, the bill moves bitcoin and other digital currencies closer to being defined as a "monetary instrument" under US anti-money laundering statutes, as it targets "funds stored in a digital format", according to a summary published by Grassley's office.

    Beyond the regulatory adjustment, the bill seeks information from the US Department of Homeland Security's Customs and Border Protection (CBP) agency about its policies on digital currencies.

    Specifically, it calls for a report "detailing a strategy to detect prepaid access devices and digital currency at border crossings and ports of entry". This report – which would be due 18 months after the ostensible passage of the bill – is also required to include details about how such a strategy would be implemented.

    The bill's release comes shortly after a member of the US House of Representatives called for a study into virtual currency use for terrorism financing.

    A full copy of the bill can be found below:

    Disclosure

    Please note that our privacy policy, terms of use, cookies, and do not sell my personal information have been updated.

    CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. CoinDesk has adopted a set of principles aimed at ensuring the integrity, editorial independence and freedom from bias of its publications. CoinDesk is part of the Bullish group, which owns and invests in digital asset businesses and digital assets. CoinDesk employees, including journalists, may receive Bullish group equity-based compensation. Bullish was incubated by technology investor Block.one.


    Learn more about Consensus 2024, CoinDesk's longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.