Crypto money laundering would face crackdown under bipartisan Senate bill

By Robert Schroeder

Proposal from Elizabeth Warren and Roger Marshall comes after FTX founder Sam Bankman-Fried is charged with money laundering

A bipartisan pair of senators on Wednesday proposed new steps to crack down on cryptocurrency money laundering, introducing a new bill in the wake of charges against the founder of bankrupt crypto exchange FTX.

Sens. Roger Marshall of Kansas, a Republican, and Elizabeth Warren of Massachusetts, a Democrat, said their bill, by closing loopholes in existing anti-money laundering rules, aims to lessen the risks that cryptocurrencies pose to U.S. national security .

The legislation would extend Bank Secrecy Act rules to digital-asset miners and wallet providers; prohibit financial institutions (KBE) from transacting with digital-asset mixers and other anonymity-enhancing technologies; and require other steps.

The Marshall-Warren bill comes after U.S. authorities have charged FTX founder Sam Bankman-Fried with money laundering and with criminal securities, commodities and wire fraud.

Also read: Sam Bankman-Fried’s empire of deception was ‘one of the biggest financial frauds in American history’ prosecutors say

Marshall said in a statement that the bill “will make it harder for criminals to finance their criminal activities, like the trafficking of illicit fentanyl through the dark web, that can harm innocent Kansans.”

-Robert Schroeder

(END) Dow Jones Newswires

12-14-22 1524ET