Blockchain Association Critiques Senator Elizabeth Warren’s Crypto AML Bill

In a letter to Congress, the cryptocurrency advocacy group Blockchain Association raised several concerns about Senator Elizabeth Warren’s proposed crypto AML bill. The letter received support from 80 individuals, many of whom have been involved with the US military or government. 

The Blockchain Association raised concerns over Senator Elizabeth Warren’s proposed crypto anti-money laundering bill. The organisation argues that Warren’s proposal would see an outflow of capital and expertise from the US. 

A Matter of National Concern

Blockchain advocacy group and non-profit organisation Blockchain Association sent a letter to Congress raising its concerns over Senator Warren’s proposed Digital Asset Anti-Money Laundering Act of 2023 (DAAMLA). Eighty individuals, many of whom have been involved with the US military or government, signed the letter. The letter’s main concern is that legislation would hinder law enforcement and present national security concerns by “driving the majority of the digital asset industry overseas.” 

2/ At issue: a damaging bill–the Digital Asset Anti-Money Laundering Act–that would hinder future innovation in digital assets, augment govt surveillance power over citizens & surrender any advantage the US currently has in the competition for supremacy in digital asset tech.

— Blockchain Association (@BlockchainAssn) February 13, 2024

In a press release discussing the letter, the Association said:

“The proposed legislation, if enacted, would effectively impose a de facto ban on digital asset development, stifling innovation and hampering the nation’s competitive edge in this rapidly evolving sector.” 

No Meaningful Effect on Foreign Illicit Actors it Targets

In the letter, the Association, with support from its signatories, agree the Bill would carry significant implications if enacted:

1. U.S. competitiveness and technological leadership are essential to our nation’s security.
2. Digital assets and the underlying technology are pivotal to our nation’s strategic advantage.
3. The Digital Asset Anti-Money Laundering Act (DAAMLA) risks our nation’s strategic advantage, threatens tens of thousands of U.S. jobs, and bears little effect on the illicit actors it targets.

The letter also details a shift to offshore regions may lead to increased liquidity in “unregulated offshore exchanges and a loss of valuable expertise and visibility for the U.S. in the blockchain realm.” 

“Further, this legislation, if implemented, will have no meaningful effect on the foreign illicit actors it targets,” the letter continues to say. 

Kirsten Smith, CEO of the Blockchain Association, commented:

“We are witnessing a pivotal moment where the future of digital asset development hangs in the balance. It is imperative that policymakers consider the collective expertise of the signatories and recognize the invaluable role digital assets play in driving economic growth, fostering technological advancement, and protecting our nation’s security.” 

Blockchain Association’s Second Letter

The letter raising concerns over Senator Warren’s DAAMLA bill is the second letter the Association has sent. The first letter, sent in November 2023, had 40 signatories and focused on the overblown narrative around how crypto played a role in the 2023-Hamas-led attack on Israel.

The Blockchain Association also recently responded to Senator Warren’s scrutiny of crypto hires. Senator Warren has accused the organisation and other industry groups of “flexing a not-so-secret weapon” of former defence and law enforcement officials being hired to undermine congressional efforts to address crypto’s alleged role in terrorist financing. In her letter, Senator Warren asked how many former military and civilian government officials and members of Congress currently work with the Blockchain Association and enquired about their roles and responsibilities.

Blockchain Association CEO Kirsten Smith responded:

“While Blockchain Association does not currently employ anyone with the credentials listed in your first question, we are fortunate and proud to count many former military, national security, intelligence officers, and law enforcement professionals among our membership.” 

Adding;

“After leaving government, these public servants could have chosen from myriad, well-deserved professional opportunities. But they were drawn to work in the emerging digital asset industry because they value freedom and creativity, sovereignty of the individual, and permissionless innovation.” 

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

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