• The Digital Asset Anti-Money Laundering Act Of 2022, proposed by Senator Elizabeth Warren, proposes regulations that would classify custodial wallets and unhosted wallet providers as money service businesses.
• The Act would also prohibit financial institutions from handling digital asset mixers, privacy coins and other anonymity-enhancing technologies.
• The Act infringes on the First Amendment by requiring anyone writing software which enables the sending, receiving and signing of Bitcoin transactions to obtain a money transmitter license.
Yesterday, the U.S. Senate proposed the Digital Asset Anti-Money Laundering Act Of 2022, a bill that is of great concern to international human rights, and deeply unconstitutional and in direct opposition to current U.S. consumer privacy regulations. This proposed act seeks to regulate digital assets, including the handling of digital asset mixers, privacy coins, and other anonymity-enhancing technologies.
The Act would classify custodial wallets and unhosted wallet providers, likely meaning developers of non-custodial wallets, as money service businesses. This means that anyone developing a non-custodial wallet would be required to obtain a money transmitter license. This requirement is a direct violation of the First Amendment, as it would require any software developer writing code that enables the sending, receiving and signing of Bitcoin transactions to obtain a license.
The Act would also prohibit financial institutions from handling digital asset mixers, privacy coins and other anonymity-enhancing technologies. This restriction would limit the freedom of users to remain anonymous when using digital assets, and could potentially lead to the restriction of the use of privacy-focused cryptocurrencies, such as Monero and Zcash.
The Digital Asset Anti-Money Laundering Act Of 2022 would have a detrimental effect on the privacy of individuals who use digital assets. It would also limit the freedom of users to remain anonymous when using digital assets, as well as the freedom of developers to create privacy-focused technologies. This act is a direct violation of the First Amendment, and should be opposed by all who believe in freedom and privacy.