Two crypto-regulatory laws that would have covered money laundering issues and examined financial institutions have been left out of the latest U.S. defence bill. This was revealed in the National Defense Authorization Act (NDAA) which was recently published. The Senate version of the bill featured these two crypto provisions, while the House’s final draft excluded them.
The Chamber of Digital Commerce, an association of tradesmen dedicated to the advancement of blockchain and crypto industries, called this “a missed opportunity.” A joint effort by the U.S. House of Representatives and Senate was made to create a measure against money laundering and build reports on privacy coins among virtual currency providers.
In response to reports of Hamas, a group considered a terrorist organization by the U.S. government, allegedly receiving over $90 million in crypto from its supporters, U.S. lawmakers are proposing the Terrorist Financing Prevention Act by 2023. This legislation seeks to prevent or enforce strict penalties on firms and organizations found to be involved with financing terrorism. Specifically, the draft law stipulates that the President forbid any transaction involving digital assets between a financial institution and an entity that is prohibited under the law.
Blockchain analytics firm Elliptic refutes the claims but, still, U.S. lawmakers are pressing forward with enforcing sanctions via the Terrorist Financing Prevention Act. This was seen by the joint effort of Republican Senator Mitt Romney of Utah, Virginia’s Mark R. Warner and Rhode Island’s Jack Reed to propose the legislation.
As a result of the rejection of the proposed rules and the estimated duration the bill would take to pass the voting phase, it is possible that the curtain has closed on the possibility of cryptocurrencies gaining any kind of regulatory mode in the U.S.