In a statement issued late Wednesday, a group of Democratic Senators said the bill still falls short of gaining their support, but they committed to working with Republicans to address concerns. Senator Elizabeth Warren, the leading Democrat on the Senate Banking Committee, argued that the proposal in its current form would enable former President Trump to largely preserve his cryptocurrency business operations, with any wrongdoing likely ignored by his sympathetic Department of Justice and subsequently shielded from prosecution once he departs office.
Additional Issues Requiring Resolution
Beyond ethical considerations, Lummis noted that negotiations over illicit finance provisions are expected to continue.
Lummis stated, “We think we’ve landed in a good place,” adding that the initiative covers the Bank Secrecy Act, anti-money-laundering safeguards, sanctions enforcement for exchanges, and oversight of decentralized finance (DeFi).
Several new provisions were incorporated based on law enforcement recommendations, including a measure to combat fraud involving cryptocurrency automated teller machines (ATMs).
The legislation also includes a safe harbor provision allowing cryptocurrency platforms to freeze funds suspected of being linked to illicit activity, especially when the platforms are collaborating with law enforcement agencies.
The bill further stipulates that, per the ‘sense of Congress,’ no fewer than two commissioners from both the Securities and Exchange Commission and the Commodity Futures Trading Commission should be appointed in consultation with the minority party. Currently, neither agency includes any Democratic commissioners; the SEC is led by three Republicans, and the CFTC operates under a single commissioner.