US Senate Backs Bill to Strengthen Crypto Regulations Amid Growing Crime Concerns

The US government is pushing for stricter regulations on cryptocurrencies through the CLARITY Act. This bill, which has gained Senate support, aims to combat crimes involving digital assets by giving the U.S. Treasury more authority to freeze transactions.

Senator Cynthia Lummis stated that North Korea's Lazarus Group and other bad actors thrive on gaps in financial rules, and the CLARITY Act would provide a safe harbor for companies to freeze suspicious transactions before they move. The proposed legislation also grants immunity from legal action to any crypto businesses that choose to freeze such transactions.

The bill expands the application of BSA (Bank Secrecy Act) and AML (Anti-Money Laundering) to cryptocurrency exchanges and DeFi systems, forcing more companies to adhere to conventional banking standards. It also allocates $150 million for FinCEN to enhance its digital asset regulation capabilities and provides grants for law enforcement agencies at the state and local level to investigate crypto crimes.