One of the provisions would make it easier to verify customer identities and transfers to private wallets by enforcing detailed record keeping and reporting, according to NBC News.
Sen. Elizabeth Warren (D-Mass.) is preparing a bill to make it more difficult to use cryptocurrency to circumvent sanctions.
In a tweet on Tuesday, Warren says her new bill will “ensure crypto isn’t used by Putin and his cronies to undermine our economic sanctions,” referring to Russian President Vladimir Putin.
According to NBC News, which was the first to report on Warren’s proposed bill, one of its provisions would make it easier to verify customer identities and transfers to private wallets by requiring financial institutions to log detailed records and submit reports to the Treasury Department.
The chances of the bill passing are limited, however, since the Republicans control the Senate.
Warren and three other Democratic senators sent a letter last week to Treasury Secretary Janet Yellen asking about how the Treasury Department plans to enforce economic sanctions within the cryptocurrency industry.
“Strong enforcement of sanctions compliance in the cryptocurrency industry is critical given that digital assets, which allow entities to bypass the traditional financial system, may increasingly be used as a tool for sanctions evasion,” the senators wrote.