• The Digital Asset Anti-Money Laundering Act Of 2022, proposed by Senator Elizabeth Warren, is deeply concerning to international human rights, unconstitutional and in direct opposition to current U.S. consumer privacy regulations.
• The Act would classify custodial wallets and “unhosted wallet providers”, likely meaning developers of non-custodial wallets, as money service businesses.
• It would also prohibit financial institutions from handling, using or transacting with digital asset mixers, privacy coins and other anonymity-enhancing technologies, as well as digital assets that have been anonymized.

The Digital Asset Anti-Money Laundering Act of 2022 is a proposal by Senator Elizabeth Warren that has the potential to have a deep and lasting impact on international human rights, consumer privacy, and the current regulations of the United States. The bill, if passed into law, would classify custodial wallets and “unhosted wallet providers”, most likely meaning developers of non-custodial wallets, as money service businesses. This would require anybody who develops software that enables the sending, receiving, and signing of bitcoin transactions to obtain a money transmitter license.

Not only does this infringe on the first amendment of the United States Constitution, but it is also in direct opposition to current US consumer privacy regulations. The Act would also prohibit financial institutions from handling, using, or transacting with digital asset mixers, privacy coins, and other anonymity-enhancing technologies, as well as digital assets that have been anonymized. This would mean that financial institutions would no longer be able to use certain technologies and services which are designed to protect user privacy.

The Digital Asset Anti-Money Laundering Act of 2022 has the potential to have a huge impact on the cryptocurrency industry. Cryptocurrency users and developers would no longer be able to use certain technologies and services to protect themselves from potential criminal activity. Furthermore, the Act would limit the current level of privacy and anonymity that individuals have when using digital assets.

The proposed Act is deeply concerning to international human rights, unconstitutional, and in direct opposition to current US consumer privacy regulations. It is important that the US Senate and other governing bodies recognize the potential implications of the Digital Asset Anti-Money Laundering Act of 2022 and its potential to limit individuals’ ability to use cryptocurrencies in a secure and private manner. If passed into law, the Act could have a long-lasting and detrimental effect on the cryptocurrency industry and the current level of privacy that users have when using digital assets.