A pair of US senators have filed a new anti-money laundering bill aimed at beefing up oversight of digital currency activities.

The bill – the Combating Money Laundering, Terrorist Financing and Counterfeiting Act of 2017 – was filed last week by Senator Chuck Grassley of Iowa and Senator Diane Feinstein of California.

Among the changes, according to a draft text of the bill, are additions to definitions for “financial institutions”, which, if the bill is passed, would include “any digital currency exchanger or tumbler”. Additionally, the bill clarifies that any “issuer, redeemer or cashier” of a “digital currency” is also covered.

While not explicitly spelled out as such, the bill moves bitcoin and other digital currencies closer to being defined as a “monetary instrument” under US anti-money laundering statutes, as it targets “funds stored in a digital format”, according to a summary published by Grassley’s office.

Beyond the regulatory adjustment, the bill seeks information from the US Department of Homeland Security’s Customs and Border Protection (CBP) agency about its policies on digital currencies.

Specifically, it calls for a report “detailing a strategy to detect prepaid access devices and digital currency at border crossings and ports of entry”. This report – which would be due 18 months after the ostensible passage of the bill – is also required to include details about how such a strategy would be implemented.

The bill’s release comes shortly after a member of the US House of Representatives called for a study into virtual currency use for terrorism financing.

A full copy of the bill can be found below:

Senate Bill

Image via Shutterstock