The Chamber of Digital Commerce (CDC), an American cryptocurrency advocacy group, has called on the chair of the Senate Banking Committee to reconsider a bill aimed at combating money laundering that has faced criticism from many in the industry.
In a post on February 20, the CDC accused Senator Elizabeth Warren and Senate Banking Committee Chair Sherrod Brown of attempting to destroy the entire digital asset industry by considering the Digital Asset Anti-Money Laundering Act (DAAMLA). The Senate Banking Committee is set to hold hearings to discuss the bill, which CDC founder and CEO Perianne Boring described as a “serious threat to US national security and the wider economy” in a letter to Brown.
Boring stated, “If this bill is passed, it will wipe out billions of dollars in value for US start-ups and devastate the savings of countless Americans who have legally invested in this asset class. It effectively prohibits digital assets by imposing compliance requirements that are not only impractical but also impossible for organizations responsible for securing blockchain infrastructure.”
The CDC CEO also emphasized that the organization is not alone in its belief that DAAMLA could potentially jeopardize US national security by driving parts of the crypto industry overseas. On February 13, the Blockchain Association sent a letter to Senator Brown and other US lawmakers, asserting that digital assets provide a “strategic advantage” to the United States.
Senator Warren introduced the DAAMLA to the US Senate in July 2023, approximately three months before Hamas launched an attack on Israel and brought greater attention to terrorist financing. The legislation specifically targets the illicit use of cryptocurrencies for money laundering and terrorism financing. Many have criticized the proposed bill for exaggerating the involvement of digital assets in illicit activities and setting out unrealistic requirements for companies to comply with.
Both Senators Brown and Warren are seeking reelection in 2024, representing Ohio and Massachusetts, respectively, with terms ending in 2031. On February 20, crypto-friendly lawyer John Deaton announced his intention to run as a Republican and challenge Senator Warren.
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