Massachusetts Senator Elizabeth Warren has reintroduced the Digital Assets Anti-Money Laundering Act, which aims to regulate the cryptocurrency industry. However, her proposal has sparked concerns about its potential to drive crypto businesses overseas and limit consumer choice.
The bill includes harsh requirements for decentralized finance (DeFi) platforms and software developers, and could force many crypto businesses to shut down or leave the United States. It also ignores the fact that blockchain and related technologies are not the same as cryptocurrency and that not all cryptocurrencies are openly traded or usable for purchases.
Experts argue that a better approach would be to focus on the businesses involved in exchanging cryptocurrency for government-issued fiat currency, or on- and off-ramps, as this is where ill-gotten money enters or disappears from the blockchain.
Furthermore, the proposed regulations could have unintended consequences, such as driving legitimate users and businesses away and increasing criminal activity.
