- This year’s National Defense Authorization Act is nearing completion.
- It includes a new language that extends the definition of “currency” to include digital currencies.
- President Trump threatens a veto for failing to repeal Section 230 of the Communications Decency Act.
Congress finishes negotiations on the National Defense Authorization Act (NDAA) for fiscal year 2021 before the bill is published in both the House and Senate.
The NDAA is a massive bill that is passed annually that includes budget approvals for the Department of Defense. The final draft of this year’s bill includes improving laundry laws and improving the comprehensive tracking of criminal activity in the Shell Holdings Act (the, uh, ILLICIT CASH Act). The law primarily focuses on strengthening government efforts in the area AML and CFTor anti-money laundering and combating the financing of terrorism.
And it expanded The “definition of” coins and currency “including digital currency” is used for illegal activities.
“In the US, it’s just too easy for criminals to hide behind anonymous Shell companies.” said Senator Doug Jones, one of the law’s co-sponsors. “Our bipartisan law gives American law enforcement and national security officials the tools they need to fight back against the criminals who want to exploit our financial system and fund their illegal activities.”
Hidden in Section 308 the law is a critical update to the way currencies are defined (at least within the framework of the document); In one case, the law states that the word “fund” should be replaced by “currency, fund or value that replaces currency or fund”.
In one Press release The main sponsor Senator Mark Warner and his co-sponsors made it clear yesterday that the new language is intended to promote the “inclusion of current and future payment systems in the AML-CFT regime”, in particular “digital payments”.
One possible wrinkle is that President Trump, now blending into the reality of his lame duck presidency, has threatened to veto the Defense Act unless it hits section 230 of the Communication decency lawThis protects technology companies like Facebook and Twitter from being held responsible for what their users post. This has been a sticking point for Trump year-round, although the actual substance of the NDAA was obviously not relevant. he signed one supreme command Try to restrict section 230 as early as May.
Trump loyalists like Lindsay Graham tried to smuggle this revision into the billBut right now, the majority of Congressmen left and right are refusing to fold.