A bipartisan group of U.S. senators led by Mitt Romney has taken a significant step in the fight against illicit transfers and money laundering in the cryptocurrency world. Introducing the Crypto-Asset National Security Enhancement and Enforcement (CANSEE) Act, the senators aim to close existing loopholes and enforce anti-money laundering (AML) and sanctions compliance regulations on decentralized finance (DeFi) services.
Senators Romney, Reed, Rounds, and Warner are determined to prevent crypto-facilitated crimes that enable malicious state actors and criminal organizations to exploit American innovation. The CANSEE Act proposes to subject DeFi platforms to the same stringent oversight applied to traditional financial companies, including centralized crypto trading platforms, casinos, and pawn shops.
Senator Romney emphasized that the legislation would bolster U.S. anti-money laundering frameworks, safeguarding national security from malign actors capitalizing on the current regulatory blind spots. Senator Reed echoed these sentiments, stating that DeFi platforms and crypto ATMs require stronger oversight and guardrails to curb money laundering and sanctions evasion by drug cartels, sex traffickers, and other criminals.
The proposed legislation not only addresses DeFi services but also introduces measures to ensure that “crypto kiosks” do not become conduits for laundering proceeds from illegal activities. Additionally, law enforcement will be equipped with better information about cryptocurrency transactions, aiding their efforts in combating cross-border drug trafficking, weapons proliferation, and ransomware attacks.
The CANSEE Act opens a vital debate on fortifying the financial system against emerging threats from criminal organizations and rogue states. As the legislation takes center stage, policymakers and stakeholders must collaborate to create a more secure and transparent crypto landscape.
