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The Crypto Industry Opposes Senator Elizabeth Warren’s Anti Money-Laundering DAAMLA Legislation
The cryptocurrency industry, represented by the Chamber of Digital Commerce (CDC), is actively lobbying against Senator Elizabeth Warren’s proposed Digital Asset Anti-Money Laundering Act (DAAMLA). The industry is concerned about the potential impact of the legislation on the crypto market and has been vocal in its opposition.
CDC’s Opposition
The Chamber of Digital Commerce (CDC) has been vocal in its opposition to Senator Elizabeth Warren’s DAAMLA legislation. The group claims that the proposed bill poses a significant threat to the crypto industry and is actively lobbying against its passage. The CDC has raised concerns about the potential impact of the legislation on digital assets and has launched a petition to stop the bill.
Threat to the Industry
In a tweet, the CDC stated that Senator Warren’s DAAMLA is “the greatest threat our industry has faced” and labeled the bill as “a proposed crypto ban.” The lobbying group expressed strong opposition to the legislation and emphasized the potential negative consequences for U.S. start-ups and investors in the digital asset class.
National Security Implications
The CDC also highlighted potential national security implications of the proposed bill, warning that it could jeopardize the U.S.’s position in the global digital economy. The group expressed concerns that the legislation could lead to a loss of leadership in the digital economy to other countries, including China, Russia, North Korea, and Iran.
Challenges with Transaction Reporting Requirements
According to the CDC, the proposed bill imposes “draconian” transaction reporting requirements on crypto miners and validators. The group likened these requirements to an “absurd” scenario where an ink manufacturer is tasked with tracking every individual who handles a dollar bill printed with their ink across the globe.
History of Opposition
Senator Elizabeth Warren introduced DAAMLA in 2022, and the industry has been actively opposing the legislation ever since. The debate around DAAMLA has intensified, particularly in the lead-up to the US Presidential elections, as crypto faces renewed scrutiny.
Blockchain Association’s Concerns
In light of the renewed scrutiny, the Blockchain Association, representing the industry’s interests in Washington, has expressed concerns over the bill sponsored by Senator Warren. The Association’s letters to congressional committees have highlighted the industry’s apprehensions about the potential impact of the proposed legislation.
Congressional Inquiry
Recently, US Congressman French Hill raised concerns about subjecting digital asset miners and validators to the same regulations as financial institutions. Hill’s inquiry echoed the industry’s concerns about the implications of stringent reporting requirements on these sectors, emphasizing that they provide a necessary service for the running of blockchain networks.
Ian is a cryptocurrency enthusiast blending humor with professionalism. With an engineering background and a storyteller's heart, he simplifies the blockchain world with sharp analysis and a touch of wit. At Cryptowire, he brings his unique perspective to make digital financial innovation accessible to all.
