Crypto advocacy group calls on Senate Banking Chair not to support Elizabeth Warren’s AML bill

Crypto advocacy group calls on Senate Banking Chair not to support Elizabeth Warren’s AML bill
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The Chamber of Digital Commerce (CDC), a United States-based crypto advocacy group, has urged the chair of the Senate Banking Committee not to consider an Anti-Money Laundering bill that has received criticism from many in the industry.

In a Feb. 20 X post, the CDC claimed Senator Elizabeth Warren and Senate Banking Committee Chair Sherrod Brown were “trying to kill the entire [digital asset] industry” by considering the Digital Asset Anti-Money Laundering Act (DAAMLA). The Senate Banking Committee will hold hearings to potentially consider the bill, which CDC founder and CEO Perianne Boring branded as a “clear and present danger to U.S. national security and the broader economy” in a letter to Brown.

“This bill, if passed, will erase hundreds of billions of dollars in value for U.S. start-ups and decimate the savings of countless Americans invested in this asset class legally,” said Boring. “[It] represents an effective prohibition on digital assets, setting forth compliance requirements that are not only impractical but also unattainable for organizations tasked with securing blockchain infrastructure.”

The CDC CEO added:

“[I]magine an ink manufacturer tasked with tracking every individual who ever handles a single dollar bill printed with their ink, across the entire globe. Such an absurd expectation underscores the impracticalities of the proposed legislation.”

The CDC is not alone in claiming the DAAMLA could potentially threaten U.S. national security by driving parts of the crypto industry overseas. On Feb. 13, the Blockchain Association sent a letter to Senator Brown and other U.S. lawmakers a letter saying digital assets represented a “strategic advantage” to the United States.

Related: Chamber of Digital Commerce opposes SEC’s overreach in Binance lawsuit

Senator Warren introduced the DAAMLA to the U.S. Senate in July 2023, roughly three months before Hamas launched an attack on Israel and put a brighter spotlight on terrorist financing. The legislation targets explicitly illicit uses of crypto assets for money laundering and financing terrorism. Many have criticized the proposed crypto bill for exaggerating digital assets in illicit activities and laying out impractical requirements for firms to follow.

Senators Brown and Warren are both running for reelection in 2024 to represent Ohio and Massachusetts, respectively, for terms ending in 2031. On Feb. 20, crypto-friendly lawyer John Deaton announced he would run as a Republican and attempt to unseat Senator Warren.

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