Regulation
Marshall Withdraws Support for Warren’s Anti-Crypto Bill DAAMLA
Senator Roger Marshall has now withdrawn his support for the Digital Asset Anti-Money Laundering Act (DAAMLA).
The move is particularly notable since Marshall co-sponsored the bill with Elizabeth Warren in 2022. The withdrawal, announcement As of July 24, the controversial bill has only 18 supporters in the Senate.
Objective of the bill and legislative context
DAAMLA, first introduced In December 2022, the law aims to bring the cryptocurrency sector under existing anti-money laundering and counter-terrorism financing regulations. The legislation aims to classify various crypto service providers, including decentralized wallet operators, validators, and miners, as financial institutions.
These entities would therefore be covered by the Bank Secrecy Act. This approach aims to address what Warren describes as the leeway that rogue states, tyrants, drug cartels and human traffickers have when conducting illicit activities through cryptocurrencies.
However, the bill has encountered much opposition. brought in addition It will return in July 2023 with a focus on combating the misuse of virtual currencies.
However, the bill has faced strong opposition from various sectors of the cryptocurrency industry. Critics say the bill greatly exaggerates the role of cryptocurrencies in facilitating terrorism and criminal activity.
Industry reaction and implications
The Chamber of Digital Commerce, a leading cryptocurrency advocacy group, has come out against DAAMLA. In February, the group urged The Senate Banking Committee rejected the bill, warning that it could potentially wipe out hundreds of billions of dollars in value from U.S. startups and have serious implications for U.S. investors who legally hold cryptocurrencies.
In addition, the opposition has not failed to come forward, and 80 former military and national security officials have formed a coalition to oppose the bill. They believe it could hamper law enforcement and increase threats to national security by pushing most cryptocurrency-related activities out of the country.
In this regard, as the debate continues, Senator Elizabeth Warren, who is a potential candidate for re-election in 2024, remains a strong supporter of DAAMLA. John Deatona lawyer who supports cryptocurrencies, said he would run against Warren as the Republican candidate. This dynamic contributes to the ongoing debate over the future of cryptocurrency regulation in the United States.