Senate Banking Targets China’s Crypto, Data Controls

While largely focused on countering fentanyl, today’s Senate Banking hearing on China, saw Committee Democrats try to ascertain the details of a potential outbound investment executive order and Republicans addressing what they believe to be shortcomings in data privacy, AML regulation, and sanctions policy. Despite broad agreement on the national security and economic threat of China, the only apparent Congressional actions address crypto and data privacy. Sen. Lummis (R-WY) announced she will be introducing a bill with Sens. Wyden (D-OR), Hagerty (R-TN), and Rubio (R-FL) to forbid the sale of personal data to foreign adversaries; review of text will be necessary to determine the bill’s impact on transborder data flows with particular regard to the payment system. Sen. Lummis will also reintroduce her broad crypto bill (see FSM Report CRYPTO28) with Sen. Gillibrand (D-NY), adding a new title on combatting illicit finance. Sen. Warren (D-MA) said she will be reintroducing her digital asset AML bill with Sen. Marshall (R-MO) that would close crypto-related gaps in the AML framework.