In a notable legislative development, two critical cryptocurrency provisions were excluded from the final version of the 2023 U.S. National Defense Authorization Act (NDAA). This bill, essential for military funding, often includes various amendments, but this year's final draft saw the omission of significant crypto-related clauses.
The dropped provisions aimed to establish an anti-money laundering (AML) examination standard for cryptocurrencies and mandated a report analyzing the use of privacy coins and other anonymity-enhancing technologies in the crypto sector. Initially included in the Senate's version of the NDAA, these clauses were not part of the House of Representatives' version and ultimately did not make it to the final bill.
Additionally, the now-omitted provisions would have tasked the Treasury Department with producing a comprehensive report on the use of mixers, tumblers, and the extent to which sanctioned entities might use these privacy tools. The Treasury was also expected to offer recommendations for legislation or regulation relating to these technologies and services.
Despite the exclusion of these crypto-specific clauses, a separate bill focusing on financial transactions with terrorist organizations was introduced. Senators Mark Warner, Mitt Romney, Jack Reed, and Mike Rounds proposed expanding U.S. sanctions rules to include entities that facilitate financial transactions with terrorists, with particular emphasis on foreign digital asset companies that could potentially support transactions to terror groups.
Disclaimer: Please note that the information provided in this article is based on the referenced research articles. It is essential to conduct further research and analysis before making any investment decisions. The cryptocurrency market is highly volatile, and investors should exercise caution and consult with financial professionals before engaging in cryptocurrency trading or investment activities.