The reintroduction of a bill aiming to require Know-Your-Customer (KYC) rules for cryptocurrency related businesses and services has been delayed due to the lack of sponsors, shared individuals close to the issue. Senators Elizabeth Warren and Roger Marshall introduced the bill in the Senate last session in December, last year. The bill is likely to encompass “unhosted wallet providers, digital asset miners, validators, or other nodes, independent network participants,” and other validators or network participants with control over networks as well.

Warren had announced the reintroduction of the bill earlier this year due to concerns about illicit activity with digital assets and potential involvement in money laundering activities. Both Warren and Marshall had hoped to launch a revised version of the bill this week, however that appears to have been delayed as the senators are currently in need of more cosponsors for their crypto anti-money laundering proposal.

In response to the bill, the Chamber of Digital Commerce, an advocacy group for the cryptocurrency industry, noted that the proposed legislation could have devastating consequences by putting “unattainable expectations” on the industry while “eradicating digital asset innovation from the United States.” The Chamber has also stated that if this bill gets passed, it could prevent the United States from becoming a leader in both the blockchain and cryptocurrency space.

Although the bill aims to provide greater investor protection and reduce the risk of money laundering, cybercrime, and other illicit activities, its opponents believe that it could stifle innovation in a space that desperately needs it.

It is unclear when the revised bill will be officially released and any discoveries of new cosponsors remain unofficial. Although Warren and Marshall did not respond for any further comments, there is still potential for the bill to create significant change in the cryptocurrency industry. As the cryptocurrency market is still relatively new, ensuring that users feel safe and secure is essential to the growth of the industry. It remains to be seen how these changes to the bill will affect investors, the government, and cryptocurrency businesses alike.



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