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 โThe Wall Street Journalโ in a tweet about X revealed that parties to the attack were funded through digital assets.
The senator's proposed bill, called the Digital Asset Anti-Money Laundering Act of 2023, seeks to expand the anti-money laundering requirements in the Bank Secrecy Act to cryptocurrency companies such as wallet providers, miners, and validators.
However, cryptocurrency trade groups such as the Chamber of Digital Commerce have opposed the bill due to concerns about stifling innovation.
The legislation was not expected to pass this year, but the link to Hamas in the attack on Israel has increased the urgency behind the bill. TD Cowen analyst Jaret Seiberg wrote that the Hamas connection "materially improves the prospects of the Digital Asset Anti-Money Laundering Act of 2023, as it makes it politically difficult for any lawmaker to stand in the way of an AML/ โStricter BSA for Cryptocurrencies.โ
Senator Warren said Hamas funding is โalarming and should be a wake-up call to lawmakers and regulators.โ He argued that it is crucial to give law enforcement the necessary powers to combat cryptocrimes.
The bill has garnered support from Senators Joe Manchin, Roger Marshall, Lindsey Graham and others. Recently, Senators Dick Durbin and Gary Peters also offered their support.
However, challenges remain due to divided partisan control in Congress. The House lacks a speaker and government funding expires on November 17. Some of Warren's money. Concerns about money laundering have been addressed in a proposed amendment to the National Defense Authorization Act of 2024.
Also read: Israel against Hamas: crypto industry strives to help victims
