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Cryptocurrency Legislation Shifts: US Senator Backtracks on Controversial Warren Bill
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In a significant development for the cryptocurrency industry, U.S. Senator Roger Marshall has inverted his support for the Digital Asset Anti-Money Laundering Act (DAAMLA), a bill introduced by Democrat Elizabeth Warren.
Marshall’s decision to backtrack on the bill signals growing concerns about the potential overreach of regulatory measures targeting the emerging cryptocurrency market.
Is US Senator Roger Marshall Now Pro-Cryptocurrency?
THE Digital Asset Anti-Money Laundering Act (DAAMLA) Bill It was first introduced in December 2022 by Elizabeth Warren and co-sponsored by Roger Marshall and later reintroduced in the Senate in July 2023 to combat the illegal use of cryptocurrencies.
At the time, Warren argued that large amounts of illegal funds were being laundered by rogue nations, oligarchs, drug lords and human traffickers through the use of digital currencies such as Bitcoinpushing her to move forward with the introduction of the bill. The legislation aimed to incorporate the cryptocurrency sector into the existing regulatory frameworks for terrorist financing and anti-money laundering (AML).
Additionally, the DAAMLA bill designates certain cryptocurrency service providers as financial institutions, such as miners, decentralized wallet providers, and validators, requiring them to comply with the regulations of the Bank Secrecy Act.
Since its introduction, the law has received criticism from important figures and institutions in the sector. With Marshall backtracking, it seems that the opposition of these important figures and institutions is gradually producing positive results.
“This is a bill we have been opposing for several years. It is an indirect ban on blockchain technology, creating impossible compliance requirements for miners, validators, etc.,” said Cody Carbone, Chief Policy Officer (CPO) of Digital Chamber.
The company’s founder and CEO, Perianne Boring, expressed his enthusiasm for development. According to the CEO, this is a huge win for the digital asset community, as a senator rarely backs down from a bill he sponsors.
“There’s only one more Republican missing, so Senator Elizabeth Warren cannot claim bipartisan support,” he added. While Marshall’s withdrawal marks a pivotal moment in the fight to cut the bill, the report shows that 18 U.S. senators still support it.
Blockchain Association Against Bill
This positive development comes months after efforts by the Blockchain Association, a trade group representing the cryptocurrency industry in Washington DC, to debunk the DAAMLA bill. Specifically, the Blockchain Association sent a letter in February, for the second time, to the House Financial Services Committee and the Senate Banking Committee, expressing serious concerns about the measure.
About 80 U.S. military, national security, and intelligence officials signed the letter. The Association says the law jeopardizes U.S. strategic advantage, threatening tens of thousands of jobs, and having minimal impact on illegal actors takes aim.
Featured image from Shutterstock, chart from Tradingview.com