Press Release

Gillibrand, Lummis, Warren & Marshall Introduce Amendment To NDAA To Prevent Use Of Crypto Assets In Illicit Financial Transactions

Jul 19, 2023

Today, U.S. Senators Kirsten Gillibrand (D-NY), Cynthia Lummis (R-WY), Elizabeth Warren (D-MA) and Roger Marshall (R-KS) introduced an amendment to the FY24 NDAA that would help prevent the use of crypto assets in illicit financial transactions. The amendment would require regulators to set examination standards for financial institutions engaged in crypto asset activities and require the Treasury Department to give recommendations to Congress regarding crypto asset mixers and anonymity-enhancing crypto assets. 

The provisions of the amendment were taken from the 2023 Lummis-Gillibrand Responsible Financial Innovation Act and Senator Warren’s and Senator Marshall’s Digital Asset Anti-Money Laundering Act, introduced in 2022.

“Prohibiting the use of cryptocurrencies for money laundering and illicit finance is critical to both our national security and economy,” said Senator Gillibrand. “This amendment will require federal regulators to enact strong examination standards that will help prevent the utilization of cryptocurrencies in illegal activities. I am proud to introduce this bipartisan amendment with Senators Lummis, Warren and Marshall and will fight hard for its inclusion in this year’s defense bill.”

“Preventing illicit finance in the crypto asset industry is an integral part of the Lummis-Gillibrand Responsible Financial Innovation Act, and I’m proud to join my colleagues in introducing an amendment to the NDAA to prevent money laundering and push bad actors out of this space,” said Sen. Lummis. “I will continue working to get this amendment included in the final bill.” 

“Crypto has become the illicit finance tool of choice for ransomware gangs, fentanyl traffickers, and rogue nations like North Korea,” said Senator Warren. “Too many actors in the crypto ecosystem fail to comply with basic anti-money laundering standards. Senator Marshall and I have been ringing this alarm bell and we’re glad to be part of a growing coalition of lawmakers who take this national security threat seriously.”

“We must work together to crack down on crypto money launderers and illicit crypto financial transactions. This is not only a matter of U.S. national security but also our economic security,” Senator Marshall said. “Our bipartisan amendment will set commonsense standards to ensure that proper guardrails are in place as crypto use continues grow across the world. I’m proud to join my colleagues in introducing this amendment to the NDAA and will continue my efforts to combat illicit finance.”

Specifically, the amendment: 

  • Sec. 01 (Examination Standards) Requires the Treasury Department, CFTC and SEC, within two years, to adopt financial institution examination standards relating to the prevention of money laundering and sanctions evasion. This provision is similar to the Digital Asset Anti-Money Laundering Act introduced last Congress by Senators Warren and Marshall.  
  • Sec. 02 (Crypto Asset Mixers and Other Technologies) Requests a report from FinCEN on uses of crypto asset mixers and tumblers and policy recommendations.  

Senators Lummis and Gillibrand reintroduced the Lummis-Gillibrand Responsible Financial Innovation Act in July 2023 and included several new provisions inspired by Senator Warren and Senator Marshall’s Digital Asset Anti-Money Laundering Act.