Senator Thom Tillis Adds Voice in Opposition to Warren’s Anti-Crypto Bill

Senator Thom Tillis Adds Voice in Opposition to Warren’s Anti-Crypto Bill

The SEC has a long history of rejecting applications for Bitcoin ETFs, citing worries about market manipulation and the safeguarding of investors.

However, Grayscale recently won a legal battle compelling the SEC to reconsider its application. While this victory is a step in the right direction, the final outcome is still uncertain.

The SEC is currently evaluating all submissions for Bitcoin ETFs, including that of Grayscale, so stay tuned for updates.

Tillis’ “significant concerns”

An open letter from Senator Tillis to Porter earlier this week has drawn attention to his concerns about the Warren-spearheaded “Digital Asset Anti-Money Laundering Act.” The senator is worried about the bill’s provisions around the Bank Secrecy Act.

Senator Tillis voiced his concerns about the potential impacts of the proposed bill in a letter to the Senate Committee on Banking, Housing, and Urban Affairs.

He believes that the bill’s efforts to extend reporting requirements to validators and miners and classify them as financial institutions for the purposes of BSA compliance “fundamentally misunderstand the technical and operational functions these positions play in blockchain operations.”

Senator Tillis voiced his concerns about the potential impacts of the proposed legislation in a letter to the Senate Banking Committee. He believes that federal regulators need the tools necessary to combat illicit finance and counter bad actors, but he has significant concerns about the likely impacts of the legislation.

Efforts to extend reporting requirements to validators and miners and classify them as financial institutions for the purposes of BSA compliance appear to fundamentally misunderstand the technical and operational functions these positions play in blockchain operations.

Senator Warren has been a driving force behind new legislation to combat the opioid epidemic. The legislation, which was originally introduced in July of 2023, has gained support from many other senators.

This is a critical issue that deserves attention, and I’m proud to support Senator Warren and her team in this effort.

The proposed bill would require those in the digital asset industry, such as miners, validators, and wallet providers, to register as financial institutions and adhere to stringent know-your-customer technology. This would help protect consumers and ensure the security of the industry as a whole.

Warren faces pushback

Members of the crypto community are up in arms against the Digital Asset Anti-Money Laundering Act, with some claiming that it would be destructive for the industry at large. They argue that the proposed bill would place undue restrictions on crypto businesses, making it difficult for them to operate.

The Chamber of Digital Commerce has spoken out against the proposed bill that would eradicate digital asset innovation in the United States.

The Chamber claims that the bill would impose impractical and unworkable compliance burdens on industry participants, which would ultimately compromise market security.

The blockchain advocacy group has argued that the bill would force “​​unnecessary compliance, stifle innovation, hinder industry growth, and force activity offshore to jurisdictions with less adequate security and oversight.”

In his letter, Tillis voices his concerns about the SEC’s approach to regulating digital assets. He remains worried about the uncertainty this has caused for good actors in the space.

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