Crypto Regulations Dropped from 2024 U.S. Defense Bill

By: Isha Das

The 2024 National Defense Authorization Act (NDAA), a crucial piece of legislation for the U.S. military, will omit any new regulations on cryptocurrencies. This comes after negotiators stripped the crypto provisions to facilitate passage through the two chambers of legislation.

The NDAA, which determines spending and priorities for defense agencies and the armed forces, avoids expanding regulatory oversight on digital assets. This indicates that any future cryptocurrency regulations will depend on further legislative action.

A previous Senate amendment requiring the Treasury Secretary to establish a protocol for assessing financial institutions’ cryptocurrency-related money laundering regulations and compliance has been omitted. Likewise, another Senate proposition calling on the Treasury Secretary to report to congressional committees about technologies facilitating anonymous crypto transactions has been dropped.

The absence of crypto regulations has reduced potential roadblocks, paving the way for the bill's passage. Still, it leaves behind an increase in digital asset oversight, a sign that legislative behavior towards cryptocurrencies remains in flux.