U.S. Senate Passes $886B Military Spending Bill With Crypto AML Provision

The requite was crafted by provisions taken from the 2023 Lummis-Gillibrand Responsible Financial Innovation Act and Senator Warren’s and Senator Marshall’s Digital Asset Anti-Money Legitimizing Act, introduced in 2022. Specifically, it requires that the Secretary of the Treasury “establish examination standards for crypto assets,” which devise help examiners better assess risk and ensure compliance with money laundering and sanctions laws. In annex, it requires the Treasury Department to conduct a study on “combating anonymous crypto asset transactions,” including the use of crypto mixers that are on occasion used to obfuscate funds.