The Chamber of Digital Commerce (CDC), an advocacy group for cryptocurrencies based in the United States, has called on the chair of the Senate Banking Committee to reject an Anti-Money Laundering bill that has faced criticism from many within the industry.
In a post on February 20th, the CDC accused Senator Elizabeth Warren and Senate Banking Committee Chair Sherrod Brown of attempting to destroy the entire digital asset industry by considering the Digital Asset Anti-Money Laundering Act (DAAMLA). The Senate Banking Committee will hold hearings to potentially discuss the bill, which CDC founder and CEO Perianne Boring described as a serious threat to national security and the wider economy in a letter to Brown.
Boring stated, “If this bill is passed, it will result in the loss of hundreds of billions of dollars in value for U.S. start-ups and devastate the savings of countless Americans who have legally invested in this asset class. It effectively prohibits digital assets by imposing compliance requirements that are not only impractical, but also unachievable for organizations responsible for securing blockchain infrastructure.”
The CDC CEO further emphasized, “The CDC is not alone in its belief that DAAMLA could potentially jeopardize U.S. national security by driving certain sectors of the crypto industry overseas.” On February 13th, the Blockchain Association sent a letter to Senator Brown and other U.S. lawmakers stating that digital assets were a strategic advantage for the United States.
Senator Warren introduced the DAAMLA to the U.S. Senate in July 2023, approximately three months before Hamas launched an attack on Israel, bringing increased attention to terrorist financing. The legislation specifically targets illicit uses of cryptocurrencies for money laundering and terrorist financing. Many have criticized the proposed bill for exaggerating the involvement of digital assets in illicit activities and outlining impractical requirements for companies to follow.
Both Senators Brown and Warren are seeking re-election in 2024 to represent Ohio and Massachusetts, respectively, with terms ending in 2031. On February 20th, crypto-friendly lawyer John Deaton announced his candidacy as a Republican in an attempt to unseat Senator Warren.
Magazine:
Concerns and uncertainty among lawmakers drive proposed cryptocurrency regulations in the United States