Crypto Legislation Shakeup: US Senator Backs Down From Warren’s Controversial Bill

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As a seasoned researcher with extensive experience in the financial technology sector, I’ve closely followed the developments surrounding the Digital Asset Anti-Money Laundering Act (DAAMLA) Bill and Senator Roger Marshall’s recent decision to withdraw his support for it.

As a crypto investor, I’m excited to share that Senator Roger Marshall has changed his stance on the Digital Asset Anti-Money Laundering Act (DAAMLA) Bill. Originally introduced by Democratic Senator Elizabeth Warren, this legislation aimed to regulate digital assets in the US. However, Senator Marshall, who previously supported the bill, has now reversed his position. The reasons behind his decision remain unclear, but this development adds another layer of complexity to the ongoing regulatory discussions in the cryptocurrency industry.

As a researcher studying the crypto market, I’ve noticed that Marshall’s decision to withdraw support for the bill suggests increasing apprehension among regulators regarding potential overreach in governing this nascent industry.

Is US Senator Roger Marshall Now Pro-Crypto?

In December 2022, Senators Elizabeth Warren and Roger Marshall presented the Digital Asset Anti-Money Laundering Act (DAAMLA) Bill for the first time. This legislation was then reintroduced in the Senate in July 2023, with a focus on preventing illicit activities involving crypto assets.

During that period, Warren believed that substantial illegal funds were being washed through digital currencies like Bitcoin by rogue nations, oligarchs, drug dealers, and human traffickers. This discovery led her to advocate for a law. The proposed legislation intended to integrate the cryptocurrency market into existing regulations for counteracting terrorist financing and anti-money laundering (AML).

Furthermore, the DAAMLA legislation categorizes specific cryptocurrency intermediaries as financial entities, encompassing entities like miners, providers of decentralized wallets, and validators. These designated parties are then obligated to observe the regulations outlined in the Bank Secrecy Act.

After its implementation, the law has faced significant critique from notable individuals and organizations within the industry. With Marshall’s recent concession, it appears that this opposition is starting to bring about desirable changes.

As a researcher studying the regulatory landscape of blockchain technology, I’ve been closely following the progression of this bill for several years now. My concern is that it could effectively ban the use of blockchain through overly burdensome compliance requirements for miners and validators.

Perianne Boring, the company’s founder and CEO, shared her enthusiasm for this latest achievement. She noted that it’s a significant victory for the digital asset community since senators seldom abandon bills they’ve sponsored.

With just one more Republican senator left to withdraw support, Senator Elizabeth Warren cannot claim bipartisan backing for the bill. However, despite Marshall’s departure marking a significant milestone in the effort to reduce the legislation, the data indicates that eighteen US Senators remain in favor of it.

Blockchain Association Against The Bill

A favorable turn of events occurred recently, as the Blockchain Association, an advocacy group based in Washington D.C. representing the crypto industry, made strides in opposing the DAAMLA bill. In February, they penned a letter to both the House Financial Services Committee and Senate Banking Committee, voicing their apprehensions about this legislation for a second time.

Approximately 80 American officials from the military, national security, and intelligence sectors have put their signatures on the letter. The Association asserts that this legislation poses a risk to the United States’ strategic advantage, potentially costing tens of thousands of jobs with only minimal effect on the intended targets of illegal activity.

Crypto Legislation Shakeup: US Senator Backs Down From Warren’s Controversial Bill

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2024-07-27 12:37