• The Senate recently introduced the Digital Asset Anti-Money Laundering Act of 2022, which contains KYC laws for self-custody wallets and money-transmitter licensing requirements.
• The European Central Bank recently revealed that Bitcoin is on an “artificially induced last gasp before the road to irrelevance.”
• The Senate Banking Committee hearing is just the beginning of the “then they fight you stage” and it will only get worse in 2023.
The United States Senate recently introduced a bill aimed at curbing the use of cryptocurrencies and digital assets in illegal activities. The Digital Asset Anti-Money Laundering Act of 2022 contains several provisions, most notably the requirement of KYC laws for self-custody wallets and money-transmitter licensing requirements. The bill has received significant criticism from the cryptocurrency community, as it could be seen as a direct attack on the freedom and security of digital asset users.
The bill comes on the heels of the European Central Bank’s (ECB) recent announcement that Bitcoin is on an “artificially induced last gasp before the road to irrelevance.” The statement has been met with criticism from the crypto community, as the bank’s comments appear to be a baseless attempt to discredit the asset class. The ECB’s announcement was followed by a statement from an official that the bank is considering a ban on Bitcoin and other cryptocurrencies in order to mitigate environmental damage.
This news has been met with a wave of opposition from the crypto community, and a recent Senate Banking Committee hearing has been the latest example of the divide between those who support and oppose cryptocurrency. The hearing, which was titled “Examining the Digital Dollar and Other Digital Assets”, featured testimony from both supporters and opponents of the asset class. The testimony highlighted the potential benefits and drawbacks of cryptocurrency and digital assets.
It appears that the U.S. Senate is entering the “then they fight you stage” of cryptocurrency adoption. While a ban and most of the regulations proposed would be extremely difficult to enforce, they could still serve as a significant speed bump to widespread adoption. The crypto community is advised to stay vigilant and pay attention to governmentally-elected representatives, just like what happened with the infrastructure bill in 2021. With the energy crisis in Europe deepening, it’s unclear how the situation will play out. It is important for crypto supporters to remain active and vocal in order to ensure that the asset class is not unfairly targeted or regulated.