Senator Warren’s Anti-Crypto Bill Faces Setback As Co-Author Withdraws

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As a seasoned researcher with extensive experience in the tech and finance sectors, I have closely followed the ongoing debates surrounding cryptocurrency regulation in the United States. The recent development regarding Senator Roger Marshall withdrawing his support for the Digital Asset Anti-Money Laundering Act (DAAMLA) is a significant setback for the controversial anti-crypto legislation championed by Democratic Senator Elizabeth Warren.

The Digital Asset Anti-Money Laudering Act (DAAMLA), which has sparked debate, encountered a major setback. Sen. Roger Marshall, a Republican co-sponsor of the crypto bill, withdrew his endorsement, weakening the prospects for this legislation aimed at combating crypto-related money laundering, spearheaded by Democratic Sen. Elizabeth Warren.

Senator Marshall Withdraws Support for Senator Warren’s DAAMLA

Senator Roger Marshall, a Kansas Republican, has withdrawn his endorsement for the Digital Asset Anti-Money Laundering Act (DAAMLA), a crypto bill he co-sponsored with Democratic Senator Elizabeth Warren in 2022. This announcement on July 24 represents a major hurdle for the contentious anti-crypto legislation.

In simpler terms, the DAAMLA bill introduced in the Senate last July aims to regulate the cryptocurrency sector by aligning it with existing Anti-Money Laundering (AML) and counter-terrorism financing (CTF) laws. This bill intends to categorize various crypto service providers such as decentralized wallet providers, validators, and miners as financial institutions under the Bank Secrecy Act.

Senator Warren has expressed the need for this bill to curb the illicit activities of “rogue states, oligarchs, criminal elements such as drug cartels, and human traffickers” in using cryptocurrencies for money laundering. Yet, the proposed legislation has met significant resistance from crypto supporters and industry professionals.

The Warning from the Chamber of Digital Commerce is that the proposed bill could wipe out hundreds of billions of dollars in value for young US businesses in the crypto sector, and potentially harm American investors in cryptocurrencies. Furthermore, a group of 80 former military and national security officials have urged lawmakers to reconsider their support for the crypto legislation.

After Marshall’s decision to withdraw his support, only 18 senators remain in favor of the bill. Notably, Senator Warren is gearing up for her upcoming reelection bid in Massachusetts, which she must navigate against the formidable opponent and pro-crypto attorney, John Deaton.

The departure of a significant collaborator on the bill casts doubt on its prospects and underscores the persistent controversy over cryptocurrency legislation in the US.

Winklevoss Twins’ Support for Deaton’s Campaign

The Winklevoss twins, Cameron and Tyler, have made a substantial donation of 16 Bitcoins, equivalent to around $1 million, towards John Deaton’s campaign to unseat Senator Warren.

The substantial donation made by the Winklevoss twins underscores their strong support for a political candidate who they believe will champion causes beneficial to the cryptocurrency sector. John Deaton, a notable advocate for digital currencies and legal representative of the crypto industry, has secured endorsements from various influential figures and entities within the crypto community.

Deaton has openly criticized Senator Warren and her allies for what he believes are unfair actions against the crypto sector. A significant contribution from the Winklevoss twins not only strengthens Deaton’s financial resources for his campaign but also conveys a powerful message about the crypto community’s determination to participate in political arenas to safeguard their causes.

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2024-07-26 10:38