The U.S. Senate is working on a new bill called the Crypto-Asset National Security Enhancement and Enforcement (CANSEE) Act of 2023 to regulate the crypto industry, especially decentralized finance (DeFi) protocols.
This bill aims to impose strict anti-money laundering (AML) requirements on DeFi platforms to prevent crypto-related crimes and money laundering that could harm national security.
Sen. Jack Reed said, “This legislation bolsters the Treasury Department’s tools to protect our national and economic security. Drug cartels, sex traffickers, and the like shouldn’t be able to use DeFi platforms to avoid justice – their victims deserve better.”
The bill would require those who control DeFi protocols or offer user-friendly applications for them to implement bank-like controls, collect customer information, report suspicious activities, and block sanctioned individuals.
“As new technologies like cryptocurrency increasingly enable new ways to conduct financial transactions, it is critical to extend Treasury’s authority to crack down on illicit financial activity that may occur outside the banking sector,” said Sen. Jack Reed.
It expands the Treasury Department’s power to regulate money laundering in crypto and non-traditional financial settings.