• The US Senate passed the 2024 National Defense Authorization Act (NDAA) worth $886 billion on July 27. The bill includes a provision targeting crypto mixers, anonymity-enhancing coins and institutions engaging in crypto trading.
• This amendment was created with provisions taken from the Digital Asset Anti-Money Laundering Act, which was introduced back in 2022 and the Responsible Financial Innovation Act, which aims to establish guardrails to prevent another FTX-style event from happening within the industry.
• The NDAA also includes an amendment that will require companies in the U.S. to disclose investments in China.
US Senate Passes National Defense Bill with Crypto Mixer Targeting Amendment
The United States Senate passed the 2024 National Defense Authorization Act (NDAA) worth $886 billion on July 27. The bill includes a provision targeting crypto mixers, anonymity-enhancing coins and institutions engaging in crypto trading.
Amendment Created with Provisions From Two Other Bills
This amendment was created with provisions taken from the Digital Asset Anti-Money Laundering Act, which was introduced back in 2022 and the Responsible Financial Innovation Act, which aims to establish guardrails to prevent another FTX-style event from happening within the industry.
More specifically, the amendment will require establishing examination standards for crypto. This would help assess risk and ensure that businesses comply with related sanctions and money laundering laws. Apart from this, it compels the U.S. Treasury Department to perform a study aimed at cracking down on anonymous crypto transactions.
Treasury Imposes Sanction Against Crypto Mixer
In 2022, the Treasury issued sanctions against the crypto mixer Tornado Cash, barring residents from using it due to money laundering activities of bad actors.
Additional Amendment Requiring Companies To Disclose Investments In China
The NDAA also includes an amendment that will require companies in the U.S. to disclose investments in China . U.S Senator Bob Casey said that this notification requirement is necessary for national security reasons.
Conclusion
The passing of this bill shows how important regulation is becoming for cryptocurrencies as they become more mainstream around world governments.