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TEXXR

Chronicles

The story behind the story

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US Senators Elizabeth Warren (D) and Roger Marshall (R) introduce the Digital Asset Anti-Money Laundering Act, including KYC requirements for wallets and miners

CoinDesk Jamie Crawley

Context & Ripple Effects

The proposal sits alongside competing congressional approaches to crypto policy: a prior small-transaction tax exemption bill sought to reduce friction for users, while the infrastructure-bill debate narrowed the broker issue around miners. Warren and Marshall instead put wallet and mining activity at the center of anti-money-laundering compliance.

Related coverage also records a privacy-and-civil-liberties critique of the bill's surveillance implications, while later stablecoin legislation shows lawmakers pursuing more targeted rules for particular crypto instruments.

First-order effects

  • Wallet providers and miners would face proposed KYC obligations, extending compliance expectations beyond the intermediaries typically associated with customer onboarding.
  • Elizabeth Warren and Roger Marshall establish a bipartisan legislative vehicle that frames crypto oversight around anti-money-laundering enforcement rather than user tax relief.

Second-order effects

  • The proposal sharpens the conflict between compliance-focused lawmakers and supporters of the earlier low-value transaction tax exemption, forcing crypto-policy debates to weigh traceability against lower-friction use.
  • Privacy advocates gain a concrete target for opposing rules that, as related coverage argues, would subject blockchain users to broad surveillance.

Third-order effects

  • If wallet- and miner-level KYC becomes the legislative baseline, US crypto policy would move from regulating specific transaction intermediaries toward regulating core network participants, widening the privacy debate surrounding the act.
  • The contrast with later stablecoin-specific legislation suggests US crypto regulation may develop through overlapping, activity-based bills rather than a single uniform framework.

The trend: US crypto policymaking is splitting between broad anti-money-laundering obligations for network activity and narrower rules for specific assets or transactions.

Discussion

  • @senwarren Elizabeth Warren on x
    Rogue nations, oligarchs and drug lords are using crypto to launder billions, evade sanctions and finance terrorism. My bipartisan bill puts common-sense rules in place to help close crypto money laundering loopholes and protect our national security. https://www.cnn.com/...
  • @stephendpalley Palley on x
    insane, overly broad, octupusine, unsalvageable, unconstitutional, kill it with fire. https://twitter.com/...
  • @valkenburgh @valkenburgh on x
    1/ Responding to Senator Warren's bill reminded me why I still believe in crypto: electronic cash. A defining characteristic that separates America from illiberal regimes like North Korea, China, and Russia is our reverence for individual autonomy, privacy, and dignity. https://t…
  • @neerajka Neeraj K. Agrawal on x
    the bill literally uses a CEX failure to go after self custody, developers, and node operation. this is deliberate opportunism. not a misunderstanding https://www.coincenter.org/...
  • @neerajka Neeraj K. Agrawal on x
    the new warren bill is a disaster. it would do nothing to prevent the next ftx. https://www.coincenter.org/...
  • @valkenburgh @valkenburgh on x
    Senators Warren and Marshall's proposed bill subjecting software devs & nodes to AML is “a repudiation of liberal values and a move towards the types of surveillance and control prized by authoritarians like Vladimir Putin, Xi Jinping, and Kim Jong-un” https://www.coincenter.org/…
  • @amandacassatt @amandacassatt on x
    What FTX did was already illegal according to existing laws. Payments on public blockchains are transparent with some exceptions like mixers but far more traceable than cash. An entire business category exists to link addresses to identities. This is 🤡 https://twitter.com/...
  • @ewarren Elizabeth Warren on x
    By closing some loopholes and applying some common-sense rules, we can crack down on the ways rogue nations, oligarchs, and drug lords use crypto to launder billions, evade sanctions, and finance terrorism. I've got a bipartisan bill for that. https://www.cnn.com/...
  • @jesse_hynes Jesse Hynes on x
    Senators @ewarren and @RogerMarshallMD are introducing the “Digital Asset Anti-Money Laundering Act of 2022” today. First impression - this will die and feels like a “look at me” introduction. 1/2 https://www.warren.senate.gov/ ...
  • @conraddit @conraddit on x
    The new bill, proposed by Senator Warren will designate all pool operators in the USA as “Money Service Businesses” as per this: https://www.fincen.gov/.... This is the bill: https://www.warren.senate.gov/ ... I have no idea what this means for Stake Pool Operators but it cannot …
  • @resistancemoney @resistancemoney on x
    Senator Elizabeth Warren has sponsored 533 piece of legislation since 2013. Exactly one has been signed into law. Oddly comforting! https://www.congress.gov/...
  • @jerrybrito Jerry Brito on x
    The bipartisan Digital Asset Anti-Money Laundering Act, introduced today by Sens. Warren and Marshall, is the most direct attack on the personal freedom and privacy of cryptocurrency users and developers we've yet seen. We explain here: https://www.coincenter.org/...
  • @dystopiabreaker @dystopiabreaker on x
    not only would it do nothing to prevent the next FTX, it would mandate that FTX is the only permissible architecture. https://twitter.com/...
  • @nikhileshde Nikhilesh De on x
    Inbox: @SenWarren and @RogerMarshallMD have introduced a bill to “crack down on cryptocurrency money laundering, financing of terrorists and rogue nations” https://www.warren.senate.gov/ ...
  • @nikhileshde Nikhilesh De on x
    According to a press release, the bill would: * bring KYC rules to wallet providers, miners, validators “and other network participants” who might facilitate transactions * have FinCEN enable the unhosted wallet rule from December 2020 * ban financial institutions from mixers
  • @bitcoinissaving @bitcoinissaving on x
    Imagine writing a law that requires open source developers to build AML/KYC into node software and hardware wallets. That's what @SenWarren did. Appalling and vile. Deeply anti-freedom and unconstitutional. https://twitter.com/...
  • @bitcoinissaving @bitcoinissaving on x
    Sadly, @SenWarren is now a fascist. Progressive democrats should condemn and disavow her. If she continues, she should be removed from @TheDemocrats https://twitter.com/... https://twitter.com/...
  • @0xngmi @0xngmi on x
    Looks like US regulators are trying to use the FTX fiasco to justify regulation that would force crypto wallets to KYC all their users🤡 https://twitter.com/... https://twitter.com/...
  • @bitcoinmagazine @bitcoinmagazine on x
    BREAKING: 🇺🇸 US Senator Warren introduces bill to KYC self-custody #Bitcoin wallets, surveil users and crack down on privacy tools. A direct attack on freedom and privacy 🚨 https://twitter.com/...
  • @adamscochran Adam Cochran on x
    Warren and Marshall want wallets and miners to do KYC.... Thanks FTX... https://www.coindesk.com/...