US Senate Passes Military NDAA Bill with Crypto Provision

The whole bill will undergo reconciliation by both the House and Senate chambers.

A group of crypto soldiers saluting, reporting to be regulated.
Created by Gabor Kovacs from DailyCoin
  • The US Senate passed a military spending bill with a crypto AML provision.
  • The provision aims to curb illicit finance in crypto.
  • The whole bill will undergo reconciliation by both The House and Senate chambers.

On Thursday, 27th July 2023, 86 members of the US Senate voted to approve the 2024 National Defense Authorization Act (NDAA), two weeks after a different version of the bill was passed by the House of Representatives. 

The bill’s latest version included a bipartisan amendment that seeks to address crypto as a high-risk vertical for illicit activities and financing terrorism, with a keen focus on financial institutions involved in digital assets trading. 

A Step to Combat Illicit Finance in Crypto

The amendment borrowed extensively from the Digital Asset Anti-Money Laundering Act, including clauses that seek to establish federal standards for examining crypto assets. The bill will require the US Secretary of Treasury to provide guidance on how regulators should identify risks in the crypto industry and ensure players comply with the country’s sanctions and money laundering laws. 


The amendment also circled back to the Lummis-Gillibrand Responsible Financial Innovation Act. The related provision would see the Treasury Department required to research how to address the problem of anonymous crypto asset transactions to curtail the obfuscation of funds. 

The bill particularly targets crypto mixers and “anonymity-enhancing” cryptocurrency assets, perceived as a bedrock for illicit industry activities.

The House had earlier passed its own version of the NDAA bill on 14th July 2023, at which time all but four Democrats voted against it.


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Learn more about the race to regulate crypto in Congress:

Crypto Bills Approved By Congress for Regulatory Clarity

This article is for information purposes only and should not be considered trading or investment advice. Nothing herein shall be construed as financial, legal, or tax advice. Trading forex, cryptocurrencies, and CFDs pose a considerable risk of loss.

Brian Danga

Brian Danga, a Kenyan crypto reporter, is dedicated to delivering breaking news and updates from the cryptocurrency world. With a background as a Web3 writer and project manager, he recognizes the importance of unbiased reporting. Holding an LLB degree from the University of Nairobi, Brian's analytical skills contribute to his accurate news reporting. His personal interests include cooking, watching documentaries, reading, and engaging in intellectual discussions.