Tillis Raises Concerns over Bank Secrecy Act Provisions
Senator Thom Tillis has officially voiced his opposition to Senator Elizabeth Warren’s controversial “Digital Asset Anti-Money Laundering Act,” expressing particular concern about its impact on the Bank Secrecy Act (BSA).
In a letter addressed to fellow Senator Mike Rounds, Tillis highlighted his “significant concerns” about the bill’s potential harm to the digital asset industry. He specifically focused on provisions that would extend reporting requirements to miners, validators, and classify them as financial institutions subject to BSA compliance.
Misunderstanding the Role of Miners and Validators
Tillis argued that such measures fundamentally misunderstand the technical and operational functions of miners and validators within blockchain operations. He believes these provisions could stifle innovation and drive the industry offshore to jurisdictions with less oversight.
Warren’s Bill Garners Mixed Reactions
Introduced in July 2023, the bill enjoyed initial bipartisan support with co-sponsors like Lindsey Graham and Joe Manchin. However, it has faced strong pushback from the crypto community who view it as overly restrictive and detrimental to the industry’s growth.
The Chamber of Digital Commerce, a blockchain advocacy group, criticized the bill for aiming to “eradicate digital asset innovation from the United States” and imposing impractical compliance burdens. Concerns regarding potential stifling of innovation and industry growth, as well as driving activity offshore, have been echoed by several industry stakeholders.
Tillis Adds to Growing Chorus of Opposition
Tillis’ letter adds another significant voice to the growing chorus of opposition against the bill. He further expressed concerns about the “SEC’s regulation-by-enforcement approach” that has created uncertainty for legitimate players in the digital asset space.
Grim Outlook for Warren’s Bill
Despite gaining some support, Warren’s bill faces an uphill battle. Open data organization GovTrack currently gives it only a 2% chance of passing, suggesting a potentially grim outlook for its prospects.
Key Takeaways:
- Senator Tillis has joined the opposition to Senator Warren’s Anti-Crypto Bill.
- Concerns over Bank Secrecy Act provisions and potential harm to the industry are key arguments against the bill.
- Both the crypto community and Senator Tillis have expressed concerns about the bill’s potential negative impact.
- Warren’s bill faces an uncertain future with a low chance of passage according to current predictions.
