The crypto community is up in arms over the U.S. Senator’s attempt at introducing a bill skeptics say is aimed at curbing cryptocurrency growth and innovation.

With the crypto community on edge after a tumultuous year that has seen the insolvency of FTX and problems at Binance, regulatory winds could well be on the horizon.

U.S. Senator Elizabeth Warren has introduced a new bill aimed at regulating cryptocurrency.

On Dec. 11, Warren introduced what is dubbed the Digital Assets Anti-Money Laundering Bill.

The has already received support from several over Senators Raphael Warnock (D-Ga.), Laphonza Butler (D-Calif.), Chris Van Hollen (D-Md.), John Hickenlooper (D-Colo.), and Ben Ray Luján (D-N.M.). 

The new bill expands the provisions of the Bank Secrecy Act to include a wide range of counterparties to include not only exchanges miners and validators, but also service providers, custodians and crypto wallet entities themselves.

The crypto community believes the bill will not benefit the cryptocurrency industry, and has reacted strongly on X.

According to Coin Center representative Neeraj K. Agrawal, tge anti-money laundering law in digital assets directly attacks technological progress and personal privacy. At the same time, he believes the bill should be vociferously opposed.

Galaxy Research also believes that Warren’s proposed rules would effectively ban Bitcoin (BTC) in the U.S. However, in the comments, users noted that the bill would not likely receive approval.

Last week, the U.S. House of Representatives Committee passed another Bill aimed at supporting blockchain technology, which authorities have rolled out as a way of spearheading a distributed ledger system in the U.S.