• Wall Street banks have found themselves in agreement with Senator Elizabeth Warren on the need for more regulation of the cryptocurrency industry.
• The Bank Policy Institute publicly endorsed bipartisan legislation introduced by Senator Warren and her colleagues, proposing stricter anti-money laundering rules and counter-terrorism financing measures.
• The proposed bill would enforce stricter identification standards on entities within the crypto industry, as well as new examination procedures.
Wall Street Banks Agree With Senator Warren On Crypto Regulation
In a surprising alignment of forces, Wall Street banks have agreed with a frequent critic, Senator Elizabeth Warren, on the need to regulate the burgeoning cryptocurrency industry more robustly. The Bank Policy Institute (BPI), a trade group for lenders that have often been at the receiving end of Senator Warren’s scrutiny, has publicly endorsed bipartisan legislation that she reintroduced this week alongside three Senate colleagues.
The Proposed Bill
The bill proposes stricter anti-money laundering rules and counter-terrorism financing measures specifically for the cryptocurrency sector. It would enforce more stringent identification standards on entities within the crypto industry, including digital-asset wallet providers and blockchain transaction validators. It would also mandate new examination procedures for cryptocurrency companies. The Treasury Department, Securities and Exchange Commission, and the Commodity Futures Trading Commission would be responsible for monitoring compliance with the expanded anti-money laundering and counter-terrorism financing requirements.
Senator Warren’s Goals
Since 2008 financial crisis when Wall Street was accused of mismanagement leading to economic downturns across America, Senator Warren had been vocal about bringing tougher regulations to banking industry so as to prevent any future instability or scams involving crypto assets trading in particular. Her current proposal is an effort towards achieving these goals in order to protect investors from frauds or other illegal activities related to cryptocurrencies such as money laundering or terrorism funding activities via virtual currencies like bitcoin or altcoins etc.
BPI Backs Legislation
The Bank Policy Institute declared its support for this proposed legislation stating “The existing anti-money laundering and Bank Secrecy Act framework must account for digital assets, and we look forward to engaging in this process to defend our nation’s financial system against illicit finance in all its forms.“ This unprecedented legislative measure aims to provide better investor protection from fraudulent activities related with crypto currency trading while ensuring that banks take steps towards preventing money laundering or terrorist financing through virtual currencies trading platforms or exchanges etc.
Conclusion
This cooperation between Senatot Warren and Wall Street banks is seen as a positive step forward in regulating cryptocurrencies which will benefit both markets – traditional banking systems as well as crypto space – by providing better security measures against fraudulent activities while encouraging ethical practices among stakeholders associated with it.