- Senator Elizabeth Warren introduced anti-crypto legislation called the Digital Asset Anti-Money Laundering Act (DAAMLA) that the crypto industry believes will devastate digital assets.
- Major crypto advocacy groups like the Chamber of Digital Commerce strongly oppose DAAMLA, calling it the “greatest threat” the industry has faced and arguing the onerous reporting requirements are unworkable.
- The crypto industry has consistently fought against DAAMLA since its introduction, with groups sending letters urging Congress to reject the legislation which they say will stifle innovation.
Senator Elizabeth Warren has introduced anti-crypto legislation that the crypto industry believes will devastate digital assets. Crypto advocacy groups are urging lawmakers to reject the bill known as the Digital Asset Anti-Money Laundering Act (DAAMLA).
The Chamber of Digital Commerce Lobbies Against the Bill
The Chamber of Digital Commerce (CDC), a major crypto advocacy group, is strongly opposing DAAMLA. The CDC called the bill the “greatest threat” the crypto industry has ever faced and started a petition to stop it, referring to the legislation as a “proposed crypto ban.”
CDC founder Perianne Boring also sent a letter to the Senate Banking Committee warning that the bill would erase hundreds of billions in value and decimate Americans’ crypto savings. She argues DAAMLA would cede crypto leadership to China, Russia, North Korea and Iran by stifling innovation in the U.S.
The CDC Takes Issue With Onerous Reporting Requirements
The CDC says the main problem with DAAMLA is the strict transaction reporting requirements for miners and validators. They compare it to forcing an ink manufacturer to track every dollar bill their ink was used for globally. The CDC says the bill has implications that could ban digital assets altogether in the U.S.
The Crypto Industry Has Consistently Opposed The Bill
The crypto industry has fought DAAMLA since its introduction in 2022. In February, the Blockchain Association sent its second letter to Congress opposing the bill. 80 signatories, including former military and intelligence officers, signed the letter.
Congressman French Hill has also questioned whether increased regulation of miners/validators makes sense, since they don’t deal directly with customers. He pointed out terrorist financing still occurs mainly through traditional finance.
Conclusion
Major crypto advocacy groups strongly oppose DAAMLA, arguing it will devastate the industry and innovation in the U.S. They say the reporting requirements are unworkable and urge lawmakers to reject Senator Warren’s anti-crypto legislation.
