Why Did Senator Roger Marshall Withdraw from the Anti-Crypto Bill?
Will DAAMLA Bill Hurt the US Crypto Industry?
Republican Senator Roger Marshall has officially withdrawn his support for the Digital Asset Anti-Money Laundering Act (DAAMLA), a controversial bill he co-created with Democrat Senator Elizabeth Warren in 2022
Reasons for Withdrawal
Marshall withdrew as a "cosponsor" of the bill on July 24, 2024, leaving 18 senators still backing the legislation, according to the official Congress directory.
Background of the DAAMLA Bill
Marshall and Warren introduced the DAAMLA bill in December 2022. Senator Warren argued that cryptocurrencies were being exploited by “rogue nations, oligarchs, drug lords, and human traffickers [...] to launder billions in stolen funds.”
The bill aims to bring the crypto industry under existing Anti-Money Laundering (AML) and counter-terrorism financing frameworks. It classifies a range of crypto service providers, including decentralized wallet providers, validators, and miners, as financial institutions, subjecting them to the terms of the Bank Secrecy Act.
Reintroduction and Criticism
Senator Warren reintroduced the DAAMLA bill to the US Senate in July 2023, targeting the illicit use of crypto assets for money laundering and financing terrorism.
Several crypto organizations and individuals criticized the bill for exaggerating crypto's role in funding terrorism and illicit activities. They warned that the bill could severely impact the US crypto industry.
Opposition from the Crypto Community
On February 20, 2024, the US-based crypto advocacy group, the Chamber of Digital Commerce (CDC), urged the Senate Banking Committee to reject the DAAMLA bill. The CDC argued that the bill could "erase hundreds of billions of dollars in value for US startups and decimate the savings of countless Americans" who had legally invested in crypto.
On February 13, 2024, a group of 80 former military and national security officials from the US government warned lawmakers against supporting the DAAMLA bill. They argued that the legislation would hinder law enforcement and increase national security concerns by "driving the majority of the digital asset industry overseas."
Political Implications
Senator Warren is running for reelection in 2024 to represent Massachusetts. On February 20, pro-crypto lawyer John Deaton announced his intention to run as a Republican candidate and attempt to unseat Senator Warren.
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