At the end of November, the US Senate and the Committee of the Judiciary scheduled a meeting to discuss bill S.1241. One particular section pertains to modify anti-money laundering policies to address concerns of money laundering as well as terrorist funding. During the meeting, cryptocurrencies were hardly mentioned, however, the bill modification could have a severe impact on cryptocurrency users in both the US and internationally.
In the meeting, it was agreed that bill S.1241 would be changed to broaden the definition of what is meant by the term “financial institution”. Previously, the term referred to banks, currency exchanges, trust companies, credit unions, and the like. However, Bill S.1241, Section 5312(a) of title 31, would be amended to include any issuer, redeemer, or cashier of digital currencies.
According to a member of the Judiciary Committee, Mrs. Feinstein, the newly modified bill would make it illegal for US citizens to withhold their ownership or control of either a bank account or cryptocurrency holdings. So far, no other implications to the cryptocurrency community due to the amended bill have been made clear.
Thus the new proposed bill aims to criminalize US citizens who deliberately withhold their ownership of any holdings or activity related to the cryptocurrency industry. However, considering the US's ties and policies regarding foreign currency and their institutions, this decision is likely to affect the entire international community.
Surprisingly, the Coinbase Board of Directors Member, Kathryn Haun Rodriguez, never stated her cryptocurrency holdings or involvement therein during her testimony. What’s more, her interrogators never mentioned these either.
However, earlier this year, Rodriguez wrote a testimony directed to the US House of Representatives on Financial Services and Subcommittee on Terrorism and Illicit Finance. In this testimony, Rodriguez wrote that cryptocurrencies are often used towards nefarious purposes as many users believe that transactions are anonymous.
During her testimony, Rodriguez also wrote that the financial technology industry could be a useful tool to the government in their fight against national security threats. Rodriguez added that cryptocurrencies could provide investigators with digital footprints which could be traced back to its individuals, providing that the exchange in question is compliant with AML/KYC policies.
The exact implications of the proposed bill are yet to be clarified. However, according to the current interpretation, it seems likely that the amended bill S.1241 is another attack in an onslaught of government-backed tactics to inhibit the cryptocurrency industry.
What makes the proposed bill, and its hearing, particularly noteworthy is the fact that, despite the implications on the cryptocurrency industry, there is hardly any mention to cryptocurrency itself. Experts have pointed out that the lack of any real cryptocurrency information and data suggests that the proposed bill could be just another attempt of the US government to inhibit the civil liberties of its citizens, especially in a booming industry which poses threats to American interest.
In the meeting, it was agreed that bill S.1241 would be changed to broaden the definition of what is meant by the term “financial institution”. Previously, the term referred to banks, currency exchanges, trust companies, credit unions, and the like. However, Bill S.1241, Section 5312(a) of title 31, would be amended to include any issuer, redeemer, or cashier of digital currencies.
According to a member of the Judiciary Committee, Mrs. Feinstein, the newly modified bill would make it illegal for US citizens to withhold their ownership or control of either a bank account or cryptocurrency holdings. So far, no other implications to the cryptocurrency community due to the amended bill have been made clear.
Thus the new proposed bill aims to criminalize US citizens who deliberately withhold their ownership of any holdings or activity related to the cryptocurrency industry. However, considering the US's ties and policies regarding foreign currency and their institutions, this decision is likely to affect the entire international community.
Surprisingly, the Coinbase Board of Directors Member, Kathryn Haun Rodriguez, never stated her cryptocurrency holdings or involvement therein during her testimony. What’s more, her interrogators never mentioned these either.
However, earlier this year, Rodriguez wrote a testimony directed to the US House of Representatives on Financial Services and Subcommittee on Terrorism and Illicit Finance. In this testimony, Rodriguez wrote that cryptocurrencies are often used towards nefarious purposes as many users believe that transactions are anonymous.
During her testimony, Rodriguez also wrote that the financial technology industry could be a useful tool to the government in their fight against national security threats. Rodriguez added that cryptocurrencies could provide investigators with digital footprints which could be traced back to its individuals, providing that the exchange in question is compliant with AML/KYC policies.
The exact implications of the proposed bill are yet to be clarified. However, according to the current interpretation, it seems likely that the amended bill S.1241 is another attack in an onslaught of government-backed tactics to inhibit the cryptocurrency industry.
What makes the proposed bill, and its hearing, particularly noteworthy is the fact that, despite the implications on the cryptocurrency industry, there is hardly any mention to cryptocurrency itself. Experts have pointed out that the lack of any real cryptocurrency information and data suggests that the proposed bill could be just another attempt of the US government to inhibit the civil liberties of its citizens, especially in a booming industry which poses threats to American interest.