Senator Marshall Will No Longer Support Anti Crypto Bill

Republican Senator Roger Marshall has retracted his endorsement of the Digital Asset Anti-Money Laundering Act, a contentious anti-crypto measure he developed alongside Democrat Senator Elizabeth Warren in 2022. His withdrawal as a co-sponsor of the bill occurred on July 24th, leaving 18 senators still in favor, according to the official Congressional directory for the legislation.

Senator Warren is seeking re-election in 2024 for her Massachusetts seat. On February 20th, pro-crypto attorney John Deaton announced his candidacy as a Republican with the aim of challenging Senator Warren.

Regulating Crypto

The DAAMLA bill, introduced by Marshall and Warren in December 2022, was championed by Senator Warren, who alleged that cryptocurrency was being exploited by rogue nations, oligarchs, drug lords, and human traffickers to launder billions in stolen funds.

The legislation seeks to regulate the cryptocurrency sector under established Anti-Money Laundering and counter-terrorism financing laws. A significant aspect of the bill is its classification of numerous crypto service providers, such as decentralized wallet providers, validators, and miners, as financial institutions, thus requiring them to adhere to the Bank Secrecy Act.

The Ramifications

Critics, including several crypto organizations and individuals, argue that the proposed legislation grossly overstates the involvement of crypto in funding terrorism and illegal activities, and could severely impact the US economy.

On February 20th, the Chamber of Digital Commerce (CDC), a US-based crypto advocacy group, urged the Senate Banking Committee to reject the DAAMLA bill, warning it could wipe out hundreds of billions of dollars in value for US startups and devastate the savings of numerous Americans who legally invested in crypto.

Additionally, on February 13th, a coalition of 80 former military and national security officials sent a letter cautioning lawmakers against endorsing the DAAMLA bill. They warned that the legislation could obstruct law enforcement and raise national security issues by driving the majority of the digital asset industry overseas.