Digital Asset Act of 2022: A Threat to Human Rights and Privacy

• The Digital Asset Anti-Money Laundering Act Of 2022 proposed by Senator Elizabeth Warren is concerning to international human rights and unconstitutional.
• The bill proposes to classify custodial wallets and “unhosted wallet providers” as money service businesses and prohibits financial institutions from handling, using or transacting with digital asset mixers, privacy coins and other anonymity-enhancing technologies.
• This would require anyone writing software which enabled the sending, receiving and signing of bitcoin transactions to obtain a money transmitter license and infringe on the first amendment.

The U.S. Senate recently proposed the Digital Asset Anti-Money Laundering Act Of 2022, a deeply concerning and unconstitutional bill which would directly impact international human rights and consumer privacy regulations. Senator Elizabeth Warren proposed the bill, which would classify custodial wallets and “unhosted wallet providers” as money service businesses and prohibit financial institutions from handling, using or transacting with digital asset mixers, privacy coins and other anonymity-enhancing technologies.

This bill is highly concerning to international human rights as it would require anyone writing software which enabled the sending, receiving and signing of bitcoin transactions to obtain a money transmitter license. The problem with this is that “unhosted wallet providers” do not exist; “unhosted wallets,” or non-custodial wallets, are simply software. It would be infringing on the first amendment to require its developers to obtain a license, as it would be an infringement on freedom of speech and expression.

The Digital Asset Anti-Money Laundering Act Of 2022 would also be in direct opposition to current U.S. consumer privacy regulations as it would require financial institutions to forgo handling, using or transacting with digital assets that have been anonymized. This would be a major blow to consumer privacy and a breach of trust, as consumers would no longer be able to rely on financial institutions to protect their personal data.

The proposed Digital Asset Anti-Money Laundering Act Of 2022 is a major concern to international human rights, unconstitutional, and in direct opposition to current U.S. consumer privacy regulations. It would require developers of non-custodial wallets to obtain a license, infringe on the first amendment, and require financial institutions to forgo the handling, use, and transaction of digital assets that have been anonymized. It is important for the public to be aware of the implications of this bill, and for policy makers to take a step back and consider the consequences of such a bill.