Camila Johnson
A surprising crypto bill has been passed by the U.S. Senate Select Committee on Intelligence (SSCI), which could impact the cryptocurrency market. Should this bill become law, it will present implications for major cryptocurrencies like Bitcoin, Ethereum, and XRP. However, its effects could trickle down and affect prices for the new coins on Coinbase as well, which according to crypto expert Goran Radanovic, have several benefits and uses for investors. That is why we will be exploring the details of this bill, its potential effects, and what it would take for it to be passed as law below.
Background on the Bill
The bill the SSCI has approved has proposed intensifying efforts aimed at addressing concerns about cryptocurrency being potentially used for illicit purposes, especially in supporting terrorist activities.
Intelligence Funding Package Inclusion
The bill’s being included in the SSCI’s intelligence funding package signifies its importance to the authority because most crypto laws have been debated on a standalone basis. This bill’s being integrated into wider intelligence efforts shows that there might be a larger coordinated approach underway aimed at dealing with crypto-related security risks.
Terrorism Prevention Focus
With this bill’s main objective being preventing bad actors from financing terrorism with cryptocurrencies, SSCI lawmakers want to have more oversight over crypto markets and impose strict regulations. By enacting laws that will allow them to do this, they hope to intercept money that could be going to extremist groups.
The Controversial Provision
Now that we know what has inspired the SSCI to come up with this bill and how they hope to embed it within the larger intelligence framework let us see what it entails.
Identity Verification Requirements
The first thing that this new bill would require is for crypto businesses to collect more information from users and share it with the government. That would mean these businesses will have to change their electronic data-proofing systems to reveal more information than they currently are. However, many critics say should this provision in the bill be okayed it will affect adoption rates as many users treasure cryptocurrencies for the privacy they offer.
Sanctions and Compliance
Another thing that lawmakers claim the bill will help with is shielding crypto businesses from being put under sanctions. They say that by enforcing compliance with know-your-customer (KYC) and anti-money laundering regulations, they can legitimize the crypto industry.
Expansion of Anti-Money Laundering (AML) Laws
Lastly, the SSCI bill claims that by expanding AML laws to require crypto businesses to keep tabs on all transactions made on their platforms, they could identify suspicious activities quickly and report these to government agencies. However, since this bill doesn’t seem to be drawing enough debate, there are chances that it won’t get passed as a law, which has brought its merits into question.
Implications for the Crypto Industry
Since we have an idea of what this bill will entail, let’s now explore the implications it can bring to the crypto industry.
Exchanges Targeted
This bill is mostly targeted at creating provisions that will allow the monitoring and regulation of foreign crypto exchanges, which means retail crypto businesses like online stores, anonymous casinos, and dApp games are still safe. It will enact stringent compliance requirements that the SSCI claims will help with improving transparency in the crypto space and prevent illicit activities.
Consequences for the Industry
Should this bill become law, it will have massive implications for the crypto sector. That’s because exchanges will have to deal with rising compliance costs that will make buying crypto more expensive and require lengthier processes for users so they stay on the right side of the law.
Unanimous Committee Vote
Even though the bill has not sparked rigorous debate, what’s surprising is that it had bipartisan support, which led to the committee’s decision being unanimous in passing it. Considering the potential impacts that could result from this quiet move, it’s concerning that the public is largely unaware of it.
Industry Response and Survival Chances
Many experts believe the bill is fighting an uphill battle as its strict requirements go against the core values of crypto use, which are decentralization and privacy. Contrarily, some lawmakers believe in its merits while others are carefully weighing the potential unintended effects the bill could result in.
One of the lawmakers who has taken this cautious approach is Senator Mark Warner, who has been engaging crypto stakeholders about this bill’s effects. But now that we know how the key stakeholders who might be affected by this bill have responded, let’s see what it will take for it to get passed.
Budget Request
For the bill to get passed into the National Defense Authorization Act (NDAA), the process begins with the president submitting a budget request to Congress. With this budget, the president may propose the inclusion of some policy changes that could include this new bill.
Committee Hearings
After the budget request is sent, the Senate Committee on Armed Services (SCAS) and the House Armed Services Committee (HASC) will hold hearings. At these hearings, senior DoD members will discuss the budget request, proposed policies, and other related matters.
Drafting Bills
Once proposed policies have been discussed, the SCAS and the HASC will start drafting separate NDAA bills.
Conference Committees
When these bills have been drafted, we reach the step where this bill is currently at, where the Senate will have to send the bill it has passed to the House. After the Senate has sent the bill, it will have to consider amendments the House has made and send both chambers’ versions to conference committees to create a compromise bill.
Final Passage
The compromise bill being sent back for final debate and passage to each chamber will mark the last step of this process. Once it is passed, the president will then sign it into law.
