The recent revelation that the attack in southern Israel, resulting in alleged deaths of 1,200 Israelis, was partially funded through cryptocurrency has sparked a push for crypto legislation. Senator Elizabeth Warren and others are advocating for a bill that would expand anti-money laundering requirements for digital asset wallet providers, crypto miners, validators, and other network participants.
The bill has faced opposition from the Chamber of Digital Commerce, but the involvement of Hamas in the attack may strengthen Warren’s argument. While the bill has not made significant progress, Warren is using the news to emphasize the urgency of her proposed measures. She believes it is crucial to equip law enforcement agencies with the necessary powers to combat crypto-financed crimes.
The bill has garnered support from Senator Joe Manchin, Republican Senators Roger Marshall and Lindsey Graham, Senator Dick Durbin, and Senator Gary Peters. However, its passage faces challenges in the current Congress. Despite this, some of Warren’s concerns regarding money laundering have been addressed in a proposed amendment to the 2024 National Defense Authorization Act.