The recent attack in southern Israel that killed 1,200 Israelis has brought renewed attention to Senator Elizabeth Warren’s push for crypto legislation,
A revelation reported by “The Wall Street Journal” in a tweet on X revealed that the parts of the attack were funded through cryptocurrency.
The Senator’s proposed bill, named the Digital Asset Anti-Money Laundering Act Of 2023, seeks to expand anti-money laundering requirements in the Bank Secrecy Act to cryptocurrency companies like wallet providers, miners and validators.
However, crypto trade groups like the Chamber of Digital Commerce have opposed the bill due to worries about stifling innovation.
The legislation was not expected to pass this year, but the link to Hamas in the Israel attack has increased the urgency behind the bill. Analyst Jaret Seiberg of TD Cowen wrote the Hamas connection “materially improves prospects for the Digital Asset Anti-Money Laundering Act of 2023 as it makes it politically difficult for any lawmaker to stand in the way of tougher AML/BSA for crypto.”
Senator Warren said the Hamas funding is “alarming and should be a wakeup call for lawmakers and regulators.” She argued it’s crucial to give law enforcement the powers needed to combat crypto crimes.
The bill has gained support from Senators Joe Manchin, Roger Marshall, Lindsey Graham and others. Recently Senators Dick Durbin and Gary Peters offered support as well.
However, challenges remain due to split party control of Congress. The House lacks a speaker, and government funding expires November 17. Some of Warren’s money. laundering concerns have been addressed in a proposed amendment to the 2024 National Defense Authorization Act.
Also Read: Israeli vs. Hamas: Crypto Industry Scrambles To Aid Victims
