US Senate Passes National Defense Bill: Here’s How It Affects Crypto
The bill's implication on the industry is far-reaching as it affects privacy coins, crypto mixers, and several digital asset exchanges.
The United States Senate has passed the National Defense Authorization Act (NDAA), a law that sets the agenda and funding standards for the Department of Defense.
The bill sets the federal government’s defense funding at $886 billion with a 5.2% pay rise for service members.
While funding was a major issue, the law affects several industries including the digital asset ecosystem.
Specifically, it targets crypto mixers alongside privacy coins that mask the identity of users making it difficult for authorities to trace blockchain transactions.
The cryptocurrency amendment in the bill was pushed by several senators including Elizabeth Warren, Roger Marshall, Cynthia Lummis, and Kirsten Gillibrand as they try to reduce the prevalence of crypto-related fraud among users.
The law will mandate authorities to raise the bar on crypto regulations across the board. Specifically, the assessment of risk involved in the operation of virtual asset services.
Money laundering and other related offenses are within the legislation’s purview as the Treasury Department is tasked with cracking down on anonymous crypto transactions facilitated by certain companies.
Crypto mixers like Tornado Cash and privacy coins used to encrypt transactions on the blockchain have been criticized by authorities for aiding money laundering by allowing fraudsters freely move illicit funds.
Last year, the Treasury Department sanctioned Tornado Cash preventing residents from using its service following the aftermath of the infamous Lazarus Group scandal, a North Korean-associated company that was at the center of a $455 million
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