Regulation
Marshall Withdraws Support for Warren’s Anti-Cryptocurrency Bill DAAMLA
Senator Roger Marshall has now withdrawn his support for the Digital Asset Anti-Money Laundering Act (DAAMLA).
This move is particularly notable since Marshall co-sponsored the bill alongside Elizabeth Warren in 2022. The withdrawal, announced on July 24, leaving the controversial bill with just 18 supporters in the Senate.
Purpose of the bill and legislative context
The DAAMLA, first introduced in December 2022, aims to bring the cryptocurrency industry under current anti-money laundering and counter-terrorism regulations. The legislation seeks to classify various crypto service providers, including decentralized wallet operators, validators, and miners, as financial institutions.
Therefore, these entities would be covered by the Bank Secrecy Act. This approach aims to address what Warren described as the leeway that rogue nations, tyrants, drug cartels, and human traffickers enjoy when conducting illicit business via cryptocurrencies.
However, there has been much opposition to the bill. Warren further brought in July 2023, with the aim of combating the misuse of virtual currencies.
However, it has faced strong opposition from various sectors within the cryptocurrency industry. Critics argue that 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 spoken out against DAAMLA. In February, the group solicited The Senate Banking Committee rejected the bill, warning that it could potentially wipe hundreds of billions of dollars in value from U.S. startups and have serious repercussions for American investors who legally hold cryptocurrencies.
Furthermore, opposition has not been lacking, with 80 former military and national security officials forming a coalition to oppose the bill. They argued that it could hinder law enforcement and increase threats to national security, driving most cryptocurrency-related activities out of the country.
In this regard, while the debate continues, Senator Elizabeth Warren, who is a potential re-election in 2024, remains a major supporter of DAAMLA. On the other hand, John Deatona cryptocurrency advocate, said he would run against Warren as a Republican candidate. This dynamic adds to the ongoing debate over the future of cryptocurrency regulation in the United States.