Cryptos: 30,351
Exchanges: 782
Market Cap: $2,352,096,857,055.9
24h Vol: $34,817,182,106.5
Dominance: BTC: 54.0% - ETH: 18.2%

Senate Bill Raises Surprise Concerns for Crypto Industry

By

A surprise provision in a Senate spending bill could significantly impact the crypto industry by requiring stricter ID checks to combat terrorist financing. The industry is pushing back, seeking open dialogue and a more balanced approach.

Senate Bill Raises Surprise Concerns for Crypto Industry img (1)
Photo: Obi – @pixel8propix/Unsplash

A recent U.S. Senate intelligence committee spending bill included an unexpected section targeting cryptocurrency and its potential ties to terrorism. This provision, catching many in the industry off guard, has sparked criticism and lobbying efforts.

The bill aims to expedite the sanctioning process for “foreign digital asset transaction facilitators” linked to users supporting terrorist groups. This could significantly impact crypto businesses by requiring them to identify users more stringently to avoid sanctions.

While the Intelligence Authorization Act passed unanimously, the crypto section wasn’t publicly discussed. However, Senator Mark Warner’s office has since met with industry representatives, suggesting the issue is still under debate.

The crypto industry is pushing back, arguing that the provision is overly broad and could impact a wider range of players than intended. Additionally, concerns exist regarding the lack of a clear system for identifying violators and the significant authority placed on the Treasury Secretary.

Industry representatives highlight their willingness to collaborate on legislation tackling illicit crypto use. They point to the recent House approval of the FIT21 Act, demonstrating bipartisan support for well-crafted crypto regulations.

Given the industry’s growing political influence and the lack of open debate, the provision’s passage within the National Defense Authorization Act (NDAA) seems unlikely. The crypto industry is determined to avoid another surprise like the 2021 infrastructure bill’s crypto tax provision, emphasizing the importance of open communication with policymakers.

READ MORE NEWS ON

Bitcoin | Inflation Deflation Deflation Inflation Cryptocurrencies

We hope this information will help you in your investment process, but this is not investment advice. Every investment carries risk, especially in this industry, so DYOR before making a decision.

ABOUT THE AUTHOR

Marc Chevalier is a British expert in cryptocurrency, artificial intelligence (AI), trading, and blockchain. He has deep knowledge of the real-world applications of these technologies in modern finance. Marc is passionate about analyzing emerging trends and explaining their impact on the future of digital currencies, financial trading, and global financial systems.

Be the first to know about crypto news every day

Get crypto analysis, news and updates right to your inbox! Sign up here so you don't miss a single newsletter.