TL;DR
- Blockchain Association warns of risks of Warren legislation: it could eliminate jobs and weaken the US in cryptocurrencies.
- Industry Expert: Warren’s Law Could Slow Cryptocurrency Innovation.
- Sherrod Brown’s endorsement key to Warren legislation.
The debate surrounding legislation proposed by Senator Elizabeth Warren, known as the Digital Asset Anti-Money Laundering Act of 2023 (DAAMLA), has generated an intense exchange of opinions in the United States Congress and has raised concern in the cryptocurrency community.
Recently, the Blockchain Association has sent a second letter to the House and Senate finance committees, expressing concerns about the bill sponsored by Senator Warren.
This association, backed by prominent cryptocurrency industry players, argues that DAAMLA jeopardizes the nation’s strategic advantage, threatens the loss of tens of thousands of American jobs, and offers limited results in the fight against actors illicit transactions in the crypto space.
The primary concern lies in the inclusion of provisions that would require all cryptocurrency miners and blockchain validators to implement strict Know Your Customer (KYC) controls and comply with the Bank Secrecy Act (BSA).
Industry experts argue that this approach could prove unworkable given the decentralized nature of blockchain technology
The Blockchain Association has come under fire from Senator Warren, who has questioned the motives and integrity of military and intelligence veterans who support its stance.
In response, the Association has reiterated its position, emphasizing that the digital asset industry supports efforts to address illicit activities, but argues that DAAMLA could lead to a migration of the industry to other countries, thus weakening the United States position in this sector.
Additionally, it is noted that Senate Banking Committee Chairman Sherrod Brown has not yet endorsed DAAMLA or any other cryptocurrency-related legislation.
Your support could prove crucial to the bill’s advancement or setback in the legislative process.
In the midst of this debate, national security leaders, former military members, and professionals with experience in digital asset technology have raised their voices.
In a letter to Congress, they express unanimous concern about the possible negative effects of DAAMLA on the national security and economy of the United States.
The DAAMLA represents a major point of friction between efforts to regulate the cryptocurrency space and the need to foster US innovation and technological leadership in an area so crucial to the country’s economic and strategic future.
