US Senator Withdraws Support for Anti-Crypto Bill Co-Created with Senator Warren
Republican Senator Roger Marshall has decided to retract his endorsement of the Digital Asset Anti-Money Laundering Act (DAAMLA), an anti-crypto bill he collaborated on with Democratic Senator Elizabeth Warren in 2022.
This change occurred on July 24, as Marshal withdrew as a co-sponsor, leaving 18 senators who are still backing the bill, as reported by the official Congress directory related to the legislation.
Marshall and Warren jointly introduced the DAAMLA bill in December 2022, with Senator Warren expressing concerns about the use of cryptocurrencies by various entities such as rogue nations, oligarchs, drug lords, and human traffickers for laundering stolen funds.
The main objective of the bill is to regulate the cryptocurrency industry within the scope of existing Anti-Money Laundering and Counter-Terrorist Financing frameworks.
One of the prominent provisions of the bill categorizes a range of crypto service providers as financial institutions, including decentralized wallet providers, validators, and miners, bringing them under the jurisdiction of the Bank Secrecy Act.
Senator Warren reintroduced the DAAMLA bill to the US Senate in July 2023 with a focus on combatting illicit activities involving crypto assets, particularly money laundering and terrorist financing.
Critics from various crypto organizations and individuals have criticized the proposed bill for sensationalizing the role of cryptocurrencies in funding terrorism and illicit activities. They have cautioned that the bill could severely impact the US crypto industry.
In February, the Chamber of Digital Commerce, a US-based crypto advocacy group, urged the Senate Banking Committee to refrain from considering the DAAMLA bill, asserting that its implementation could significantly devalue US startups and adversely affect the investments of many Americans who are involved in crypto activities.
Furthermore, on Feb. 13, a group of 80 former military and national security officials issued a letter advising lawmakers against supporting the DAAMLA bill. In their communication, they highlighted concerns that the legislation could impede law enforcement efforts and raise national security risks by promoting the migration of the majority of the digital asset industry outside the US.
Senator Warren is seeking reelection in 2024 to represent Massachusetts. John Deaton, a pro-crypto advocate, announced his candidacy as a Republican on Feb. 20 with the intention to challenge Warren in the upcoming election.
