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Bitcoin was hit with a double-whammy today with a large liquidation of longs overnight (around $100 million)…

Source: CoinGlass

Additionally, data from the statistics resource CoinGlass had cross-crypto long liquidations for the day stood at over $400 million.

And then another leg lower as US Senator Elizabeth Warren introduced legislation to address her concerns surrounding the alleged misuse of digital currencies in illicit activities, citing money laundering, drug trafficking, sanctions evasion, and more.

Which smashed BTC down to test support just above $40,000…

As Nik Hoffman reports at BitcoinMagazine, the bill, supported by a coalition within the Banking Committee, marks a significant push for increased oversight and regulation within the Bitcoin and cryptocurrency sphere. Citing risks associated with cryptocurrencies, Senator Warren stressed that digital currencies are used as an avenue for criminal activities, and that must be addressed through stringent regulatory frameworks.

Senator Warren's bill aims to mandate stricter reporting requirements by extending the Bank Secrecy Act (BSA) responsibilities, including Know-Your-Customer (KYC) requirements, file reports on "transactions involving unhosted wallets", and more. All in attempt to close "loopholes and bring the digital asset ecosystem into greater compliance."

This bill is endorsed by Bank Policy Institute, Massachusetts Bankers Association, Transparency International U.S., Global Financial Integrity, National District Attorneys Association, Major County Sheriffs of America, Massachusetts Sheriffs’ Association, AARP, National Consumer Law Center, and National Consumers League.

The proposed legislation comes at a time when the popularity and adoption of Bitcoin has surged worldwide, particularly in the United States. As next month, the Securities and Exchange Commission (SEC) will have to make a decision on whether to approve the US's first spot Bitcoin exchange traded fund (ETF) or not, which if approved, could see massive institutional and retail demand for BTC.

Last Thursday, Senator Warren went live on CNBC claiming that North Korea is using Bitcoin and crypto to fund nearly half of its nuclear weapons program. 

As Galaxy Digital head of firmwide research Alex Thorn notes in a sobering X thread, Warren's bill would effectively ban crypto in America.

Continued from X:

Update: And a question…