Senator Elizabeth Warren has introduced the Digital Asset Anti-Money Laundering Act, focusing on curbing the misuse of digital currencies in illegal activities such as money laundering, drug trafficking, and sanctions evasion.

The bipartisan bill, supported by Senators Roger Marshall, Joe Manchin, and Lindsey Graham, seeks to enhance national security by tightening anti-money laundering (AML) and economic sanctions regulations related to cryptocurrencies.

The legislation notably extends compliance obligations to decentralized finance (DeFi) services, requiring them to meet the same standards as traditional financial institutions. This includes centralized crypto trading platforms. The act is a crucial step in bridging the regulatory gap between conventional financial operations and the emerging digital asset space, aiming to prevent the use of cryptocurrencies in criminal activities and ensuring a safer financial environment.

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