U.S. Congress rejects virtual currency-related provisions in National Defense Authorization Act
Excludes virtual currency related clauses
On the 6th, the U.S. Congress announced the National Defense Authorization Act (NDAA), which sets the framework for the defense budget for fiscal year 2024 (October 2023 to September 2024). The bill did not include any provisions regarding crypto assets (virtual currencies) or blockchain.
By way of background, Sens. Kirsten Gillibrand (D), Robert Marshall (R), Cynthia Lummis (R), and Elizabeth Warren (D) have proposed a bipartisan NDAA amendment. Ta.
The bill includes requiring regulators to set screening standards for financial institutions engaged in virtual currency activities, and requiring the Ministry of Finance to make recommendations regarding virtual currency mixing services and anonymous currencies with high privacy. Thing.
What is mixing service?
A method that hides the origin of virtual currency and the identity of the holder by mixing multiple virtual currency transaction data. Although this system is originally intended to enhance privacy, there have been cases where it has been used to launder cryptocurrencies obtained illegally through hacking or other methods.
Virtual currency glossary
“Prohibiting the use of virtual currencies for money laundering and illicit financing is critical to both our national security and our economy,†said Senator Gillibrand in a statement regarding the amendment.
Additionally, in April, Gillibrand and her colleagues introduced the Financial Technology Protection Act, which would create an independent task force to combat terrorism and illicit financing.
The idea was to create a group that would bring together various U.S. government agencies, private financial technology companies, financial institutions, and research institutions to consider efforts to combat money laundering and the financing of terrorism.
Both have now been removed from the defense budget.
Recently, the U.S. Treasury Department is reportedly planning to designate the city as a money laundering hub because the Islamic group Hamas uses its mixing services.
connection: U.S. Treasury Department may designate virtual currency mixers as money laundering hubs due to Middle East situation = report
Long-awaited regulatory clarification
Congressman Lummis said he was “disappointed†by the removal of virtual currency-related bills from the NDAA and reiterated the need to address illicit funds.
The U.S. Congress needs to pass legislation that provides strong consumer protections and creates a well-regulated and secure cryptocurrency market in the United States.
He also plans to work with Senator Gillibrand on the Responsible Financial Innovation Act to ensure the United States remains a global financial leader and regulate cryptocurrencies.
connection:What is the Responsible Financial Innovation Act (RFIA) drafted by bipartisan US lawmakers?
In the United States, several virtual currency-related bills are currently being debated.
Representative examples include the “Bill on Clarification of Payment Stablecoins,†which aims to create a clear regulatory framework for stablecoins, and the “Bill for the 21st Century,†which aims to clarify regulations for the virtual currency industry. Financial Innovation and Technology Act.
Both of these bills passed the House Financial Services Committee in July, but will now need to be submitted to the Senate Banking Committee, and there is no prospect of enactment.
In the United States, the SEC in particular has been criticized for cracking down on virtual currencies without providing clear regulatory guidelines. We are looking forward to the development of clear regulations based on law.
connection: US House of Representatives emphasizes importance of stablecoin bill in response to PayPal USD
connection：U.S. House of Representatives passes industry protection bill that prohibits the use of funds from the SEC’s crackdown on virtual currency companies
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