Republican Senator Roger Marshall has withdrawn his support for the Digital Asset Anti-Money Laundering Act, leaving 18 senators backing the controversial bill co-authored with Senator Elizabeth Warren.
Points
- Senator Roger Marshall withdraws support for Warren’s anti-crypto bill.
- The bill has faced backlash for its stringent measures on crypto.
- Critics argue it could drive the industry overseas and harm the US economy.
- The bill still retains support from 18 senators.
Republican Senator Roger Marshall has withdrawn his support for the Digital Asset Anti-Money Laundering Act, a controversial bill co-authored with Senator Elizabeth Warren. This development leaves 18 senators still backing the bill, which aims to impose stringent measures on the cryptocurrency industry.
Legislative Background
The Digital Asset Anti-Money Laundering Act, reintroduced to the US Senate in July 2023, seeks to classify various crypto service providers, including decentralized wallet providers, validators, and miners, as financial institutions. This classification would subject them to the Bank Secrecy Act’s terms, imposing rigorous anti-money laundering （AML） and counter-terrorism financing （CTF） requirements.
Criticism and Backlash
The bill has faced significant backlash from the cryptocurrency community and various advocacy groups. Critics argue that the bill exaggerates the role of cryptocurrencies in illegal activities and could severely impact the US crypto industry by driving innovation and businesses overseas. The Chamber of Digital Commerce, a US-based crypto advocacy group, has urged the Senate Banking Committee to reconsider the bill, warning that it could erase hundreds of billions of dollars in value for US startups and devastate the savings of countless Americans who have legally invested in crypto.
Additionally, a group of 80 former military and national security officials wrote to lawmakers, cautioning that the bill might hinder law enforcement efforts and increase national security risks by pushing the digital asset industry abroad.
Warren Warns Senate of Crypto Mining Dangers
During a recent Senate hearing, Senator Warren highlighted the potential dangers of foreign-owned crypto mining facilities in the US. She argued that these facilities pose environmental risks and could be used for espionage, making the US vulnerable to targeted blackouts and cyberattacks. Warren emphasized the need for the US to pass laws addressing these issues and prevent foreign entities from exploiting the crypto mining sector.
Explanation
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Regulatory Impact: The Digital Asset Anti-Money
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Laundering Act aims to impose strict regulatory measures on the crypto industry, but it has faced significant opposition due to its potential to drive businesses overseas and stifle innovation.
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National Security Concerns: Senator Warren’s concerns about foreign-owned crypto mining facilities highlight potential risks, including environmental damage and espionage, which could threaten US infrastructure and security.
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Legislative Developments: The withdrawal of support by Senator Roger Marshall reflects growing resistance within the Senate, indicating a contentious path ahead for the bill.