US lawmakers have decided to make another attempt to create an effective regulatory framework for the digital asset segment. Against this background, a new bill was ratified, which provides for strict requirements for combating money laundering (AML) in the segment of decentralized finance (DeFi).
According to the plans, the Law on Improving National Security in the field of Cryptocurrencies will require DeFi protocols to apply control measures to their user base that are used in the American banking system.
The official briefing of the US Senate noted: “The new legislative amendments are aimed at combating the growth of crime related to digital assets. It is necessary to work to block any opportunities for money laundering and evasion of sanctions restrictions. This is of fundamental importance for the national security of the States.”
DeFi protocols are financial applications that enable holders of crypto wallets to conduct transactions and make loans through smart contracts. It is much more difficult to regulate them than centralized platforms, since they interact directly with public blockchains.
The proposed bill aims to eliminate this problem. Regulatory authorities will be formed, whose main task is to collect information about suspicious activity and financial transactions.
In parallel, the bill establishes requirements for identity verification by specialized sites. If these regulatory amendments are ratified, it will allow the US Treasury Department to significantly expand its powers to prosecute potential criminals who may be associated with money laundering.