• The Digital Asset Anti-Money Laundering Act Of 2022, proposed by Senator Elizabeth Warren, would classify custodial wallets, non-custodial wallet developers and cryptocurrency miners, validators and other nodes as money service businesses.
• The Act also proposes a rule that prohibits financial institutions from handling, using or transacting with digital asset mixers, privacy coins and other anonymity-enhancing technologies.
• The proposed regulations would infringe upon the First Amendment by requiring anyone writing software which enabled the sending, receiving and signing of bitcoin transactions to obtain a money transmitter license.
The Digital Asset Anti-Money Laundering Act Of 2022, proposed by Senator Elizabeth Warren, is deeply concerning to international human rights and unconstitutional, infringing upon the First Amendment of the United States of America. This bill, if passed, would drastically alter the way digital assets are regulated, forcing anyone writing software which enabled the sending, receiving and signing of digital assets to obtain a money transmitter license.
The Act seeks to classify custodial wallets, non-custodial wallet developers, cryptocurrency miners, validators and other nodes that may act to validate or secure third-party transactions, independent network participants and other validators with control over network protocols as money service businesses. Additionally, it would also promulgate a rule that prohibits financial institutions from handling, using or transacting with digital asset mixers, privacy coins and other anonymity-enhancing technologies.
The implications of such stringent regulations are far-reaching and could have a devastating impact on the development of digital asset technology and the security of the digital asset ecosystem. It would impose strict licensing regulations on companies and individuals that develop non-custodial wallets, forcing them to invest time and resources into a complex and costly process. Not only would this add an extra layer of bureaucracy and cost, it would also make it virtually impossible for independent developers to create and offer wallet services.
Furthermore, the Act would also prohibit financial institutions from handling, using or transacting with digital asset mixers, privacy coins and other anonymity-enhancing technologies. Such a move would be detrimental to digital asset users, as it would limit their ability to keep their digital assets secure and anonymous. It would also expose users to an increased risk of theft and fraud, as criminals would be able to track wallet addresses and transactions.
Overall, the Digital Asset Anti-Money Laundering Act Of 2022 is a deeply concerning and unconstitutional bill, which would have a detrimental impact on the security and privacy of digital asset users. The proposed regulations would impose a significant burden on developers and would make it much harder for users to keep their digital assets secure and anonymous. It is essential that the bill is rejected by the Senate and that digital asset users are given the freedom to confidently use and transact with digital assets.