Last week on November 28 a revision was made to the U.S. bill S.1241 called “Modernizing AML Laws to Combat Money Laundering and Terrorist Financing.” During the U.S. Senate committee hearing, the bill’s words and the representatives bolstering the proposed law amended a critical definition of what a ‘financial institution’ is within the suggested statutes.
Bill S.1241: Amending the Definition of a Financial Institution
News.bitcoin.com has reported on bill S.1241 multiple times since the proposed law was introduced by U.S. bureaucrats back in June. According to The Satoshi Revolution author, Wendy McElroy, the bill is a “pit bull assault on bitcoin freedom.” Now, this week without causing much attention, the U.S. Committee of the Judiciary members gathered to discuss digital currency implications towards AML/KYC regulatory guidelines. However, during the meeting, it is clear from the recorded video that the words “financial institution” will be amended to cover a much broader definition.
Instead of utilizing the definition of a ‘financial institution’ which includes business models like banks and credit unions, S.1241’s amendment in Section 5312(a) of title 31, United States Code states that the definition now includes, “an issuer, redeemer, or cashier of prepaid access devices, digital currency, or any digital exchanger or tumbler of digital currency.”