US Senator Roger Marshall Shifts Stance on Crypto Legislation
In a significant turn of events, United States Senator Roger Marshall has reversed his support for the Digital Asset Anti-Money Laundering Act (DAAMLA) Bill, a measure originally introduced by Democrat Elizabeth Warren. This move signals a growing apprehension regarding potential regulatory overreach within the burgeoning cryptocurrency market.
Roger Marshall’s Pro-Crypto Position
The Digital Asset Anti-Money Laundering Act (DAAMLA) Bill was initially put forward in December 2022 by Elizabeth Warren, with Roger Marshall as a co-sponsor. This bill was reintroduced to the Senate in July 2023, with the primary objective of combating the illicit use of digital assets.
- Elizabeth Warren’s concerns centered on the laundering of illicit funds by rogue nations, drug traffickers, human traffickers, and other criminal entities through cryptocurrencies like Bitcoin, prompting her to advocate for this legislation.
- The DAAMLA bill sought to integrate the cryptocurrency industry into existing frameworks for anti-money laundering (AML) and counterterrorism financing.
Furthermore, the bill identified specific cryptocurrency service providers, such as miners, decentralized wallet providers, and validators, as financial institutions, mandating their compliance with regulations under the Bank Secrecy Act.
Industry Opposition and the Ripple Effect
Since its introduction, the DAAMLA bill has faced substantial opposition from prominent industry figures and entities. US Senator Roger Marshall’s withdrawal from the bill suggests that this opposition is beginning to yield favorable outcomes.
- The Chief Policy Officer of Digital Chamber, Cody Carbone, criticized the bill for potentially impeding blockchain technology through impractical compliance requirements for miners and validators.
- Perianne Boring, the founder and CEO of Digital Chamber, expressed enthusiasm over Marshall’s decision, emphasizing the significance of a senator retracting sponsorship from a controversial bill.
While Marshall’s action marks a significant milestone in challenging the bill, reports indicate that 18 US Senators continue to back the legislation.
Blockchain Association’s Resistance to the Bill
This positive development follows the efforts of the Blockchain Association, a trade organization representing the crypto industry in Washington D.C., to oppose the DAAMLA bill. The association issued a letter to the House Financial Services Committee and Senate Banking Committee in February, underscoring serious reservations about the proposed measure.
- About 80 US military, national security, and intelligence officials endorsed the letter, warning that the bill could compromise the country’s strategic interests and jeopardize thousands of jobs while minimally impacting its intended targets.
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