CryptoLink - January 2024 Updates

Congress continues to plug along on crypto policy. The Senate’s attention – on a bipartisan basis – has been focused on extending Anti-Money Laundering (AML) regulatory authority to the digital assets space. This continues to draw fire from the crypto industry, particularly given concerns about AML application to decentralized finance. That said, it does seem that even the most aggressive crypto proponents in the House understand that some work in AML might be the price of entry on broader crypto legislation on stablecoins and market structure. House Financial Services Chairman Patrick McHenry (R-NC) and Rep. French Hill (R-AR) continue to work closely with Ranking Member Maxine Waters (D-CA) and the Administration on a stablecoin resolution, and they say that they are “close” to a deal. Given the AML concerns of the Administration, as well as continued concerns from Treasury about the systemic risk that digital assets might eventually pose to the larger financial system, there seems to be a shared interest in getting a regulatory framework to the President for signature sometime this year.