Senator Elizabeth Warren, a well-known critic of cryptocurrencies, has gained increased support for the bipartisan Digital Asset Anti-Money Laundering Act. The legislation aims to address concerns about the use of crypto in illegal activities such as money laundering and drug trafficking. The bill has gained backing from five additional senators, including members of the Senate Banking, Housing, and Urban Affairs Committee. The proposed legislation seeks to reduce risks associated with crypto by closing loopholes and bringing the digital asset ecosystem into compliance with established anti-money laundering frameworks. It specifically targets challenges related to unhosted digital wallets and aims to strengthen enforcement of compliance with anti-money laundering standards. However, the proposal has faced criticism from members of the crypto community who argue that it unfairly classifies certain individuals as money service businesses. Senator Warren has previously called for stricter regulations on crypto and has raised concerns about its use in funding terrorism and criminal enterprises.
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