The bipartisan bill introduced by senators on Wednesday, July 19, is set to grant the US treasury authority over cryptos, decentralized finance, and automatic teller machines (ATMs). Labeled as the Crypto-Asset National Security Enhancement and Enforcement (CANSEE) Act, the bill’s sponsors are looking to reign in back actors, including drug traffickers, criminals, hostile state agents, and others leveraging DeFi, to form a veil of financial protection. Authored by Democrat Senator Jack Reed, and co-authored by Republican Mark Warner, Mitt Romney, and Mike Rounds, the proposed bill insists that decentralized financial protocols comply with ideas scripted on anti-money laundering (AML) rules, as provided by economic sanctions imposed by the federal government, etc.
The provision goes beyond decentralization alone allowing tertiaries of individuals amassing sums of $25 Million dollars in DeFi reserves to incur liability over the lack of pinpointing who exercises influence over the protocol. Mike Rounds expressed concerns that criminals and hostile nation groups would use this to their advantage, concealing illicit activities and enabling escaping funding alleviation slithers. Senator and longtime-conspiring-crypto-critizer Elizabeth Warren added, “criminals playing by the rules can tap into the cryptocurrency potential“.
With a recently reported fentanyl trafficking case using decentralized financing systems as a money-laundering conduit, justice-seeking branches, including The US Treasury Department, have gone as far as sanctioning protocols — such as Tornado Cash in 2022 — in which deregulated initiatives formed speaking support with blockchain power-earning Edward Snowden, who expressed being “profoundly authoritarian“ over the legal stance in the federal court evoked by The Coin Centre to contravene it, tempering the greater effort of disaffecting crypto-cash-stealers through an all-encompassing viable safeguard-sequel.
