WASHINGTON—The Senate Judiciary Committee is currently tackling bill S 1241 that aims to criminalize the intentional concealment of ownership or control of a financial account.
The bill is expected to impact cryptocurrency users, as well.
The bill also would amend the definition of “financial account” and “financial institution” to include digital currencies and digital exchanges, respectively. According to ranking committee member Senator Dianne Feinstein (D-CA), the proposed bill is needed to modernize existing AML laws, The Cointelegraph reported.
The bill would amend the definition of “financial institution,” in Section 53412(a) of title 31, United States Code, to include:
“An issuer, redeemer, or cashier of prepaid access devices, digital currency, or any digital exchanger or tumbler of digital currency.”
If passed, the bill would likely have far-reaching effects for users of digital currencies both in the U.S. and abroad, The Cointelegraph reported.
Several industry commentators have issued their opinions on the proposed law, The Cointelegraph reported. Cryptocurrency analyst Tone Vays claimed that he expects a confrontation between the Bitcoin team, including the holders and users, and the U.S. government.
“It’s bad…I think it’s gonna end in a very confrontational way between Bitcoin—even Bitcoin holders and users—and the U.S, Government,” Vays said, according to The Cointelegraph report.
“Earlier reports also indicate that the White House is actively monitoring cryptocurrencies which could only mean more attempts to regulate the world’s first successful decentralized monetary system. With the growing involvement of Wall Street and the ever-escalating media attention, it is not surprising that governments are stepping up their attempts to regulate digital currency,” The Cointelegraph stated.