The U.S. Senate has passed the 2024 National Defense Authorization Act (NDAA), which includes provisions for tighter regulations on cryptocurrency trading.

U.S. Senate Passes 2024 NDAA With Stricter Crypto Regulations And Oversight

The provisions included in the amendment were derived from the 2023 Lummis-Gillibrand Responsible Financial Innovation Act and Senator Warren’s and Senator Marshall’s Digital Asset Anti-Money Laundering Act, both introduced in 2022.

The bipartisan amendment targets crypto trading oversight and anonymous assets. The bill mandates the Secretary of the Treasury to establish examination standards for crypto assets and conduct a study on combating anonymous crypto asset transactions.

Key Provisions and Implications

The key aspects of the amendment required the Secretary of the Treasury to establish examination standards for crypto assets, enabling better risk assessment and ensuring compliance with anti-money laundering and sanctions laws.

Additionally, the Treasury Department was mandated to conduct a study on combating anonymous crypto asset transactions, particularly focusing on the use of crypto mixers that can obscure fund origins. Senator Lummis stressed the necessity of cracking down on illicit finance in the crypto industry to root out bad actors and prevent crypto assets from being exploited for evading sanctions and funding terrorism.

Broader Legislative Landscape

In the same vein, the House Financial Services Committee approved the Financial Innovation and Technology for the 21st Century Act on July 26. The bill aims to establish clear guidelines and consumer protections for the cryptocurrency industry. Although the bill passed with a 35-15 vote, it faced strong opposition from several senior Democrats.

In a separate development, the House Agriculture Committee also advanced the Financial Innovation Technology for the 21st Century Act following the House Financial Services Committee’s approval. The bill seeks to create a comprehensive federal regulatory framework for cryptocurrencies within the United States.