• The Digital Asset Anti-Money Laundering Act of 2022 proposed by Senator Elizabeth Warren is concerning for human rights, unconstitutional, and in direct opposition to current US consumer privacy regulations.
• The bill seeks to classify custodial wallets and “unhosted wallet providers” as money service businesses, and prohibits financial institutions from handling, using, or transacting with digital asset mixers and privacy coins.
• The bill would require anyone writing software which enabled the sending, receiving, and signing of bitcoin transactions to obtain a money transmitter license, infringing on the First Amendment.
The Digital Asset Anti-Money Laundering Act of 2022, proposed by Senator Elizabeth Warren, has many concerned about the potential implications of this bill on international human rights, and the constitutionality of it. The bill seeks to regulate digital assets, including cryptocurrencies and digital wallets, as money service businesses. This would require anyone creating and using unhosted wallets, or non-custodial wallets, to obtain a money transmitter license.
The implications of this bill are far-reaching and concerning. Section three, part a of the bill would classify custodial wallets and “unhosted wallet providers”, likely meaning developers of non-custodial wallets, as money service businesses. This would require anyone writing software which enabled the sending, receiving, and signing of bitcoin transactions to obtain a money transmitter license, infringing on the First Amendment.
Furthermore, section three, part d of the bill would also prohibit financial institutions from handling, using, or transacting with digital asset mixers, privacy coins, and other anonymity-enabling technologies. This would mean that any users seeking to ensure privacy and anonymity in their transactions would be unable to do so through traditional financial institutions, making it difficult for individuals to protect their financial data.
The Digital Asset Anti-Money Laundering Act of 2022 is deeply concerning and has the potential to negatively impact human rights, as well as infringe on the First Amendment. It is also in direct opposition to current U.S. consumer privacy regulations, making it an unconstitutional bill. It is imperative that this bill is closely monitored and evaluated by policymakers to ensure that it does not violate any laws.