Crypto Group Warns Senate Banking Chair On Endorsing Elizabeth Warren’s AML Bill

Jimmy Aki
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In a letter on February 20, The Chamber of Digital Commerce (CDC) urged Senate Banking Chair Sherrod Brown to halt endorsements on the Digital Asset Anti-Money Laundering Act (DAAMLA).

The CDC emphasized that this bill proposed by Brown and Senator Elizabeth Warren purportedly seeks to dismantle the entire crypto sector.

Crypto Group Cautions Senate Chair On Elizabeth Warren’s AML Bill

The CDC, a US-based crypto advocacy group, believed that if the bill is considered, it could severely hinder the digital asset industry.

In the letter addressed to Brown, Perianne Boring, the founder and CEO of the CDC, elaborated more concerns regarding the potential ramifications of the proposed legislation.

Boring’s critique of DAAMLA is straightforward. She noted that its enactment could result in significant losses for American crypto startups.

Aside from that, it could negatively impact the investments of many individuals in digital assets.

Boring draws a parallel between the compliance requirements outlined in the bill and an unrealistic burden.

She likened it to expecting an ink manufacturer to monitor every person worldwide who handles a dollar bill printed with their ink.

The CDC’s position reflects broader industry apprehension surrounding DAAMLA, with organizations like the Blockchain Association also expressing significant reservations.

For instance, on February 13, 80 signatories, including numerous individuals with U.S. military or government backgrounds, expressed their opposition in a letter.

The letter argues that the proposed legislation would impede law enforcement efforts and raise national security apprehensions by prompting a migration of the digital asset industry abroad.

Senator Warren, a proponent of the bill, introduced DAAMLA to the Senate in July 2023. The goal is to address illicit activities such as money laundering and terrorism financing facilitated by cryptocurrencies.

However, the bill has faced criticism for potentially overstating the role of digital assets in illicit activities. It also imposes compliance requirements that many within the sector view as unrealistic.

Unfriendly Crypto Legislation Could Negatively Impact Elections

Recently, the rise of cryptocurrencies has ignited discussions and apprehensions regarding their potential facilitation of illicit activities, particularly concerning money laundering.

In light of this, Senators Warren and Brown are lawmakers who have been highly critical of digital assets.

Furthermore, both seek reelection in 2024 to represent Ohio and Massachusetts until 2031.

On the other hand, on February 20, John Deaton, a lawyer supportive of cryptocurrency, declared his candidacy as a Republican, aiming to challenge Senator Warren.

Deaton emphasized his advocacy for cryptocurrencies as a legal practitioner through his campaign platform. He also noted filing an amicus brief on behalf of XRP holders in a legal dispute involving the SEC and Ripple.

Deaton has consistently championed the rights of cryptocurrency investors, frequently criticizing the SEC and policymakers for their regulatory actions against digital assets.

Currently, political strategies may pivot based on candidates’ positions on cryptocurrency.

Coinbase data indicates that one in five Americans owns digital assets, totaling 52 million individuals.

Morning Consult reports that 22% of respondents who own cryptocurrency identify as Democrats, while 18% identify as Republicans and 22% as Independents. Moreover, 60% belong to Generation Z or Millennials, with 41% being minorities.

Significantly, 55% of this demographic expressed hesitance to support candidates who oppose cryptocurrency principles.

Considering cryptocurrency’s rising influence, candidates can reshape the electoral landscape in 2024 by adopting pro-cryptocurrency stances.

About Jimmy Aki PRO INVESTOR

Based in the UK, Jimmy is an economic researcher with outstanding hands-on and heads-on experience in Macroeconomic finance analysis, forecasting and planning. He has honed his skills having worked cross-continental as a finance analyst, which gives him inter-cultural experience. He currently has a strong passion for regulation and macroeconomic trends as it allows him peek under the global bonnet to see how the world works.