## Summary of the Digital Asset Anti-Money Laundering Act of 2023 (S. 2669)
**Sponsored by:** Senators Elizabeth Warren and Roger Marshall
**Date:** July 27, 2023
**Current Status:** Passed both the Senate and House of Representatives, awaiting Presidential signature.
**Purpose:** To mitigate the risks that digital assets pose to national security by closing loopholes in existing anti-money laundering (AML) and countering the financing of terrorism (CFT) frameworks and bringing the digital asset ecosystem into greater compliance with these regulations.
**Key Provisions:**
* **Regulation of Digital Asset Kiosks:** Requires the Financial Crimes Enforcement Network (FinCEN) to develop regulations for digital asset kiosks, including customer identity verification and collection of transaction counterparty information.
* **Digital Asset Mixers:** Prohibits the use of digital asset mixers and other anonymity-enhancing technologies for transactions exceeding $10,000.
* **MSBs and Digital Asset Entities:** Establishes an AML/CFT compliance examination and review process for Money Services Businesses (MSBs) and other digital asset entities.
* **Securities and Exchange Commission (SEC) and Commodity Futures Trading Commission (CFTC) Oversight:** Directs the SEC and CFTC to establish AML/CFT compliance examination and review processes for the entities they regulate.
* **Foreign Account Reporting:** Requires individuals transacting with digital assets exceeding $10,000 through offshore accounts to file a Report of Foreign Bank and Financial Accounts (FBAR) with the Internal Revenue Service (IRS).
* **Study on Blockchain Analysis:** Mandates a study on the use of blockchain analysis to combat money laundering and other illicit activities related to digital assets.
**Significance:** This Act, if signed into law, would represent a significant step towards addressing concerns about the potential use of digital assets for illicit activities. It would also bring the digital asset industry into closer alignment with the existing AML/CFT frameworks governing the traditional financial system.
**Current Stage:** As of December 11, 2023, the Act has passed both the Senate and House and is awaiting President Biden's signature.
**Additional Resources:**
* **Text of the Act:** [https://www.billsponsor.com/bills/486678/senate-bill-2669-congress-118](https://www.billsponsor.com/bills/486678/senate-bill-2669-congress-118)
* **Senator Warren's Website:** [https://decrypt.co/117221/senator-warren-crypto-bill-kyc-self-custody-wallets](https://decrypt.co/117221/senator-warren-crypto-bill-kyc-self-custody-wallets)
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