Tim Scott’s Crypto Bill Faces Senate Pushback Over Money Laundering Concerns
Republican Senator Tim Scott’s proposed cryptocurrency legislation has hit a roadblock after bipartisan criticism from Senate colleagues. The bill’s Section 604—which WOULD exempt certain software developers from financial licensing requirements—drew fire from Judiciary Committee leaders Chuck Grassley (R-Iowa) and Dick Durbin (D-Ill.), who argue it undermines anti-money laundering enforcement.
A private letter obtained by POLITICO reveals concerns that the provision, mirroring the Blockchain Regulatory Certainty Act, was advanced without Judiciary Committee review. Scott postponed a planned markup amid opposition from crypto firms and legislative uncertainties.
The controversy highlights growing tensions between crypto innovation and regulatory oversight. As Scott’s spokesperson noted, the senator welcomes further dialogue—but the path forward remains unclear for this piece of market structure legislation.
