US Senate Passes Bill Targeting Crypto Mixers, Tightening Oversight

• The US Senate has passed the 2024 National Defense Authorization Act (NDAA), which includes an amendment that targets crypto mixers, anonymity-enhancing coins and institutions engaging in crypto trading.
• The amendment will require establishing examination standards for crypto to assess risk and ensure compliance with related sanctions and money laundering laws.
• The NDAA also includes an amendment that requires companies in the U.S. to disclose investments in China.

US Senate Approves National Defense Bill

The United States Senate passed the 2024 National Defense Authorization Act (NDAA) worth $886 billion on July 27th. This bill helps authorize how the country’s defense department can utilize federal funding, and includes a provision targeting crypto mixers, anonymity-enhancing coins and institutions engaging in crypto trading.

Crypto Amendment Established

The amendment was created with provisions taken from the Digital Asset Anti-Money Laundering Act, which was introduced back in 2022, and Responsible Financial Innovation Act. This amendment requires establishing examination standards for crypto to assess risk and ensure businesses comply with related sanctions and money laundering laws as well as cracking down on anonymous crypto transactions through services such as Tornado Cash used to make transactions private.

Tornado Cash Sanctions

In 2022, the Treasury issued sanctions against cryptocurrency mixer Tornado Cash, barring residents from using the service due to it not imposing controls that disallow money laundering from bad actors in space.

Companies Required to Disclose Investments In China

The NDAA also includes an amendment that will require companies in the U.S. to disclose investments in China by Senator Bob Casey’s proposal stating that this notification would help protect American investors from being unknowingly exposed to foreign entities controlled by hostile governments like China’s Communist Party government or Russia’s Putin regime .

Conclusion

Overall, this new bill is set out to help combat money laundering activities within cryptocurrency as well as increase transparency within companies who invest or partner with foreign entities such as those of China or Russia’s governments.