The Transparency and Accountability in Cryptocurrencies Act (TRCA) aims to create a stricter regulatory framework to monitor and control transactions of Bitcoin (BTC) and other cryptocurrencies in the United States. This is done through a new bill introduced in the Senate today by US lawmaker Elizabeth Warren.
The bill is seen as dangerous by the cryptocurrency industry as it extends the bank secrecy law to the crypto asset sector. This happens because service companies such as: Exchanges, custodial or non-custodial wallets, and Bitcoin ATMs meet the same regulatory requirements than traditional financial institutions.
The aim is to prevent cryptocurrencies from being misused to commit crimes. We start from the principle that everyone Users of Bitcoin and other cryptocurrencies must be monitored.
This includes the implementation of Money laundering prevention measuressuch as customer identity verification or KYC (Know Your Customer) procedures and reporting suspicious transactions that are only transactions over $1,000.
If this law passes, financial institutions would also be prohibited from interacting with companies that offer services that obscure the trail of transactions, such as cryptocurrency mixers. All with the idea of helping Bitcoin users protect their privacy.
“The Treasury Department is making clear that we need new laws to crack down on the use of cryptocurrencies to enable terrorist groups, rogue states, drug traffickers, ransomware gangs and fraudsters to launder billions in stolen funds, evade sanctions, launch illegal weapons programs “finance and profit from devastating cyber attacks.”
Elizabeth Warren, US Senator.
The lawmaker added that five new senators have “joined the fight to crack down on the misuse of Bitcoin and other cryptocurrencies.” Among those who support the proposal The Banking Committee has three members and furthermore, it gains strength with 19 co-sponsors.
“Our bipartisan bill It is the most difficult proposal on the table to combat the illegal use of cryptocurrencies and provide regulators with more tools to do so,” Warren added.
The bill is also supported by the Bank Policy Institute, the Massachusetts Bankers Association, Transparency International US, Global Financial Integrity and the National District Attorneys Association, among others a publication from Bitcoin Magazine.
Warren's initiative reached the Senate at a time when there has been a major regulatory assault on the cryptocurrency sector in the United States, leading to a rush from crypto asset exchanges and other industry players.