Targeted Digital-Asset Standards Possible in Senate

The Senate Banking Committee’s hearing today on illicit finance focused as expected on cryptocurrency and suggests that targeted legislation addressing specific jurisdiction or compliance issues might advance on a bipartisan basis.  Sen. Warren (D-MA) is, though, seeking a much broader bill.  Joined by other panel Democrats but not Chairman Brown (D-OH), the bill would expand the reach of current sanctions to certain foreign firms, increase the President’s sanction power in this sector, and — most controversially — demand public reports on troublesome firms and individuals.  Ranking Member Toomey (R-PA) made it clear that he is not prepared to go this far, reiterating longstanding views that digital assets enhance innovation and should be more widely used in the U.S. to ensure global leadership in a fast-growing sector.