US Senator Roger Marshall has withdrawn his support for Elizabeth Warren’s anti-crypto bill, the Digital Asset Anti-Money Laundering Act （DAAMLA）, which has faced significant criticism from the crypto community for its stringent regulatory measures.
Points
- Senator Roger Marshall withdraws support for DAAMLA.
- The bill aims to impose strict AML regulations on crypto.
- The bill is co-sponsored by Elizabeth Warren.
- The crypto industry has heavily criticized the bill.
- The bill still has support from 18 other senators.
United States Senator Roger Marshall has withdrawn his support for the Digital Asset Anti-Money Laundering Act （DAAMLA）, a controversial anti-crypto bill co-sponsored with Senator Elizabeth Warren. The bill, introduced in December 2022, aims to impose stringent anti-money laundering （AML） regulations on the cryptocurrency industry.
Marshall’s decision to step back from the bill, which aims to bring a wide range of crypto service providers under the regulatory umbrella of the Bank Secrecy Act, was noted on July 24. Despite his withdrawal, the bill continues to have the backing of 18 senators.
Senator Warren has emphasized the necessity of the DAAMLA bill to curb the illicit use of cryptocurrencies by rogue nations, oligarchs, drug lords, and human traffickers. The bill seeks to regulate decentralized wallet providers, validators, and miners, among others.
Crypto Industry Pushback
The DAAMLA bill has faced significant criticism from the crypto community. Numerous organizations and individuals argue that the proposed regulations would exaggerate the role of crypto in illicit activities and potentially stifle innovation by imposing overly burdensome compliance requirements. On February 20, the U.S.-based crypto advocacy group Chamber of Digital Commerce urged the Senate Banking Committee not to consider the DAAMLA bill, warning it could erase hundreds of billions of dollars in value for U.S. startups and harm countless American investors.
In a letter dated February 13, a group of 80 former military and national security officials expressed their concerns about the bill, suggesting that it would drive the majority of the digital asset industry overseas, thus increasing national security risks rather than mitigating them.
Implications for Elizabeth Warren’s Re-Election Campaign
Senator Warren, who is running for re-election in 2024 to represent Massachusetts, has made regulating the crypto industry a central part of her campaign. Pro-crypto lawyer John Deaton has announced his intention to challenge her for the Senate seat, highlighting the growing political divide over the regulation of digital assets.
解説
- Regulatory Challenges: The withdrawal of support by Senator Roger Marshall underscores the complexities and challenges in regulating the fast-evolving cryptocurrency industry. The DAAMLA bill’s broad scope has raised concerns about overregulation and its potential impact on innovation and market dynamics.
- Crypto Advocacy: The strong opposition from the crypto community and advocacy groups highlights the sector’s pushback against regulations perceived as excessive. The balance between preventing illicit activities and fostering innovation is a key point of contention.
- Political Implications: Senator Elizabeth Warren’s firm stance on crypto regulation and the subsequent political response, including John Deaton’s challenge, reflect the growing significance of cryptocurrency issues in U.S. politics. The debate around DAAMLA will likely influence future regulatory approaches and election outcomes.
- Market Impact: The potential passage of stringent AML regulations could have significant implications for the crypto market, affecting service providers and possibly driving parts of the industry offshore. Monitoring legislative developments will be crucial for stakeholders.
- Future Outlook: The ongoing debate over DAAMLA and similar regulatory proposals will shape the regulatory landscape for cryptocurrencies in the U.S. The outcomes will influence market operations, innovation, and the broader acceptance of digital assets.