US National Defense Authorisation Act may be problematic:Reports
financialexpress.comCircle’s USD Coin (USDC $1.00) and other stablecoins is expected to face a compliance in case the new national defense bill that passed in the United States Senate is executed, stated Cointelegraph.
With insights from an investment note made on July 31, 2023, Mark Palmer, analyst, Berenberg, mentioned that a recent amendment to the 2024 National Defense Authorisation Act (NDAA) could potentially introduce a new Know Your Customer and Anti-Money Laundering measures that stablecoin issuers will be unable to follow, Cointelegraph added.
“The amendment would require the U.S. Treasury Secretary to ‘establish examination standards for crypto assets’ that would help regulators to ensure compliance with money laundering and sanctions laws,” Mark Palmer explained.
Furthermore, Palmer mentioned that the identity of stablecoin users can only be determined when the asset is issued and redeemed. “Such an outcome would likely cause further deterioration in USDC’s market cap,” Palmer told Cointelegraph.
(With insights from Cointelegraph)
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