The Chamber of Digital Commerce (CDC), a crypto advocacy group based in the United States, has called on the chair of the Senate Banking Committee to refrain from considering an Anti-Money Laundering bill that has faced criticism from many industry players.
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 review the bill, which CDC founder and CEO Perianne Boring described as a significant threat to U.S. national security and the overall economy in a letter to Brown.
Boring stated, “If passed, this bill will wipe out billions of dollars in value for U.S. startups 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 unattainable for organizations responsible for securing blockchain infrastructure.”
The CDC CEO also highlighted that the DAAMLA could potentially jeopardize U.S. national security by causing parts of the crypto industry to move overseas. On February 13th, the Blockchain Association sent a letter to Senator Brown and other U.S. lawmakers, emphasizing that digital assets are 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, shining a spotlight on terrorist financing. The legislation specifically targets the illicit use of crypto assets for money laundering and terrorism financing. Many have criticized the proposed crypto bill for exaggerating the involvement of digital assets in illicit activities and setting impractical requirements for firms to comply with.
Both Senators Brown and Warren are running for re-election in 2024 to represent Ohio and Massachusetts, respectively, with terms ending in 2031. On February 20th, crypto-friendly lawyer John Deaton declared his intention to run as a Republican and challenge Senator Warren.
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