Crypto Advocates Sound Alarm Over Senator Warren’s AML Bill (DAAMLA)

In a recent legislative battle, the Chamber of Digital Commerce (CDC), a leading voice in the crypto advocacy space, has launched a vigorous campaign against Senator Elizabeth Warren’s Digital Asset Anti-Money Laundering Act (DAAMLA). 

The confrontation shows the deep-rooted tensions between regulatory ambitions and industry innovation within the cryptocurrency ecosystem.

Senator Warren first introduced DAAMLA in 2022, positioning it as a crucial measure to combat illicit financial activities facilitated by cryptocurrencies. 

However, the bill has since sparked intense debate, with critics warning of its potential to stifle innovation and drive legitimate businesses overseas.

“They are trying to kill the entire [digital asset] industry”

The CDC has emerged as a vocal opponent of DAAMLA, asserting that the bill, if enacted, could have dire consequences for the digital asset industry. 

Perianne Boring, the CDC’s founder and CEO, has warned that the bill’s stringent transaction reporting requirements could suffocate industry growth and innovation, likening them to an “absurd” burden on crypto miners and validators. He said in a warning letter:

“This bill, if passed, will erase hundreds of billions of dollars in value for U.S. start–ups and decimate the savings of countless Americans invested in this asset class legally.”

Digital assets have been under attack from politicians for years, but never like this. Senators @SenWarren and @SenSherrodBrown are trying to kill the entire industry, and their efforts are moving forward. pic.twitter.com/n7jJEAIjKI

— The Digital Chamber (@DigitalChamber) February 20, 2024

Concerns Over Leadership Takeover

Moreover, Boring has raised broader concerns about the bill’s impact on U.S. national security, arguing that it could inadvertently weaken America’s technological leadership on the global stage. 

With geopolitical rivals such as China and Russia poised to capitalize on regulatory uncertainty, the CDC has sounded the alarm over the potential ramifications of DAAMLA.

“This bill will ensure we cede any remaining leadership position in the digital economy to China, Russia, North Korea, and Iran.”

Boring said.

The legislative debate surrounding DAAMLA has intensified against the backdrop of the 2024 reelection campaigns of Senators Warren and Sherrod Brown, representing Massachusetts and Ohio, respectively. 

Their stance on the bill and its implications for the crypto industry may emerge as pivotal issues in the upcoming elections, especially with the entry of crypto-friendly figures like lawyer John Deaton into the political arena.

Related: Nine U.S. Senators Publicly Support Elizabeth Warren’s Cryptocurrency Legislation

Concerns From All Angles

Adding to the complexity of the debate, the Blockchain Association, representing the interests of the crypto industry in Washington, has expressed profound concerns about DAAMLA. 

In a recent letter to congressional committees, the association highlighted the potential adverse effects of the bill on innovation and economic growth.

Meanwhile, Congressman French Hill, chair of the House Financial Services Subcommittee on Digital Assets, Financial Technology, and Inclusion, has raised questions about the practical implications of subjecting crypto miners and validators to the same regulatory framework as financial institutions. 

While not explicitly mentioning DAAMLA, Hill’s remarks echo broader concerns about regulatory overreach and its impact on industry stakeholders.

This is big strike and a potential FUD toward the crypto market, the cryptocurrency community remain actively watching where it all leads to, because we all know the far-reaching implications of this Bill if passed.

Read Also: California’s AB 39 Crypto Regulation Bill: Implications for the Industry and Bitcoin Adoption