Warren’s Crypto Bill Is Likely Unconstitutional. It’s Also Unlikely to Pass

Sen. Elizabeth Warren (D–Mass.) is trying to force feed the American people a poison pill. The high-profile legislator, known today as much for her disdain of cryptocurrency as for Big Banks, has submitted a bill for consideration looking to crackdown on crypto’s alleged use in illicit finance.

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On Monday, five Democratic lawmakers joined to co-sponsor the so-called “Digital Asset Anti-Money Laundering Act.” If passed, the law would extend Bank Secrecy Act requirements including know-your-customer (KYC) rules to miners, validators, wallet providers and other crypto industry actors.

Three of the five new sign-ons are colleagues of Warren on the Senate Banking Committee. They are: Sens. Raphael Warnock (D-GA), Laphonza Butler (D-CA) and Chris Van Hollen (D-MD). The committee is a powerful body in the Senate, responsible for passing laws that regulate one of the U.S. largest economic sectors and that will likely influence what legislative proposals will be considered next year.

That said, Warren’s bill, as it exists, is unlikely to pass for many of the same reasons U.S. governance is often hamstrung: partisan politics, infighting and gridlock.

And that is a good thing, not only for the crypto industry — where many leaders have already come out forcefully against the bill — but for the American public. The anti-money laundering act, while likely conceived with the best intentions, comes with some truly worrisome conditions attached.

Much ink has already been spilled over the bill, so I won’t rehash much of the debate other than saying Warren’s bill essentially would make it illegal to use crypto in the U.S. and put severe restrictions around writing code meant to provide people with similar privacy guarantees as paper money.

Some, like industry lobbyists at Coin Center, have noted the law would likely be unconstitutional.

See also: ‘We’re Not Asking for Special Treatment’: Coin Center on the Proposed IRS Broker Rules

It likely won’t pass for other reasons — in part, after the mess that FTX caused, U.S. legislators are intent on passing actual crypto regulatory reforms, and Warren’s bill — instead of…