The National Defence Authorization Act’s two repealed sections dealt with problems related to money laundering and cryptocurrency.
Two clauses intended to address concerns about cryptocurrency-related money laundering were removed by the US government from the National Defence Authorization Act (NDAA).
The nation’s defence department is permitted to use federal funds in accordance with the NDAA, a piece of legislation. Two provisions concerning a comprehensive review system and reporting of crypto activities to counteract illicit practices were specifically mentioned in the long list of provisions removed from the NDAA.
The initial clause required the U.S. Secretary of the Treasury to work with banking and government authorities to establish a system of risk-based cryptocurrency examination and review for financial institutions. Combating anonymous transactions involving cryptocurrency mixers and tumblers was the focus of the second clause.
Creating a report outlining the amount of cryptocurrency asset transactions connected to sanctioned organisations was required for this. The report would also address the regulatory strategies used by other jurisdictions.
After that, the US government would receive guidance on how to implement crypto regulations:
“Recommendations for legislation or regulation relating to the technologies and services described in paragraphs (1) and (3).”
The $886 billion National Defence Authorization Act (NDAA) was reportedly approved by the US Senate on July 28.
The Responsible Financial Innovation Act, which aims to put safeguards in place to prevent another FTX-style incident in the industry, and the Digital Asset Anti-Money Laundering Act, which was introduced in 2022, were both included in the amendments pertaining to cryptocurrencies. A group of senators led by Roger Marshall, Elizabeth Warren, Kirsten Gillibrand, and Cynthia Lummis proposed this.
The United States government has been considering matters concerning money laundering and financing of terrorism made possible by cryptocurrency use.
On November 15, the U.S. House of Representatives’ Financial Services Committee convened to talk about illicit activity in the cryptocurrency ecosystem. A review of the measures taken by decentralised finance providers and cryptocurrency exchanges to stop money laundering and terrorist financing was also conducted during the meeting.