In a significant development for the cryptocurrency industry, United States Senator Roger Marshall has overturned his support for the Digital Asset Anti-Money Laundering Act (DAAMLA) Bill, a legislation introduced by Democratic Party Elizabeth Warren.
Marshall’s move to back down from the bill indicates the growing concerns about the possible overreach of regulatory actions regarding the emerging crypto market.
Is US Senator Roger Marshall Now Pro-Crypto?
The Digital Asset Anti-Money Laundering Act (DAAMLA) Bill was first introduced in December 2022 by Elizabeth Warren and co-sponsor by Roger Marshall and later reintroduced into the Senate in July 2023 to target unlawful use of crypto assets.
At the time, Warren maintained that large amounts of illegal funds were being laundered by rogue nations, oligarchs, drug lords, and human traffickers through the use of digital currencies such as Bitcoin, prompting her to move toward introducing the bill. The legislation aimed to incorporate the cryptocurrency sector into the current frameworks for counterterrorism financing and anti-money laundering (AML).
In addition, the DAAMLA bill designates certain cryptocurrency service providers as financial institutions, such as miners, suppliers of decentralized wallets, and validators, requiring them to adhere to the Bank Secrecy Act’s regulations.
Since its introduction, the law has received criticism from major figures and institutions in the industry. With Marshall backing down, it seems the opposition from these top figures and institutions is gradually producing positive results.
“This is a bill we have been opposing for several years. It’s a backdoor ban on blockchain technology by creating impossible compliance requirements for miners, validators, etc,” Cody Carbone, the Chief Policy Officer (CPO) of Digital Chamber stated.
The company’s founder and CEO, Perianne Boring, also expressed her excitement about the development. According to the CEO, this is a huge win for the digital asset community as a Senator rarely backs down from a bill they have sponsored.
“We only have one more Republican to go so Senator Elizabeth Warren can’t claim bipartisan support,” she added. Although Marshall’s withdrawal marks a pivotal moment in the fight to slash the bill, the report shows that 18 US Senators still support it.
Blockchain Association Against The Bill
This positive development comes a few months following the Blockchain Association, a trade group representing the crypto industry in Washington D.C., efforts to debunk the DAAMLA bill. Specifically, the Blockchain Association sent out a letter in February, which marks the second time, to the House Financial Services Committee and Senate Banking Committee expressing serious concerns about the measure.
About 80 US military, national security, and intelligence officers signed the letter. According to the Association, the law jeopardizes the strategic advantage of the US, threatening tens of thousands of employment while having minimal impact on illegal actors it targets.
Featured image from Shutterstock, chart from Tradingview.com
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