North Charlotte Today

WASHINGTON, D.C.– Today, Senators Thom Tillis (R-NC) and Bill Hagerty (R-TN), members of the Senate Banking, Housing, and Urban Affairs Committee, have unveiled a discussion draft of the Ensuring Necessary Financial Oversight and Reporting of Cryptocurrency Ecosystems (ENFORCE) Act aimed at combating illicit finance within the crypto sector.

In discussing the draft, Senator Tillis emphasized the need for action against cryptocurrency-related money laundering while cautioning against overly aggressive regulatory measures. He stated, "We must take action to stop bad actors who launder with cryptocurrency, however this does not provide a license for heavy-handed, regulatory-obsessed lawmakers to regulate an entire industry into oblivion." Senator Tillis also highlighted the importance of finding a balanced regulatory approach to protect consumers and combat illicit activities within the digital asset space.

The ENFORCE Act, as outlined in the discussion draft, includes provisions to ensure that all centralized and customer-facing digital asset financial institutions adhere to Bank Secrecy Act anti-money laundering (BSA/AML) standards. Additionally, the legislation aims to provide regulators and law enforcement with enhanced tools to address digital asset illicit finance effectively.

Key provisions of the ENFORCE Act include clarifying Treasury’s authority to combat money laundering associated with digital asset transactions, preventing digital asset bad actors from being forewarned about investigations, and establishing a public-private task force for sharing information on digital asset illicit finance.

Senator Tillis expressed optimism about the draft, stating, "This discussion draft represents a positive step towards right-sizing our approach to regulating cryptocurrency while preserving digital innovation, and I look forward to receiving feedback and working with my colleagues on the path forward."

The release of the discussion draft signifies a significant move towards addressing illicit finance within the cryptocurrency ecosystem, with a focus on enhancing oversight and reporting mechanisms to safeguard against fraudulent activities.