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Blockchain Association Warns Warren’s Anti-Crypto Legislation Threatens US Jobs and Strategic Advantage

source-logo  cryptonews.com 13 February 2024 05:03, UTC
Ruholamin Haqshanas
Last updated: | 2 min read

Source: Reuters

The Blockchain Association has sent a second letter to the House Financial Services Committee and Senate Banking Committee expressing concerns over a bill sponsored by Senator Elizabeth Warren.

The legislation, titled the Digital Asset Anti-Money Laundering Act of 2023 (DAAMLA), has garnered support from 19 other Senators as co-sponsors, raising alarm bells within the crypto community.

In November of 2023, the Blockchain Association initially sent a letter with 40 signatories from former U.S. military, national security, and intelligence officers.

This recent letter, however, boasts 80 signatories from individuals with similar backgrounds.

Policy Implication of Warren’s Anti-Crypto Legislation

While the first letter aimed to dispel what was seen as an exaggerated narrative linking cryptocurrencies to the 2023 Hamas-led attack on Israel, the new letter shifts the focus to the policy implications of Warren’s DAAMLA legislation.

According to the Blockchain Association, Warren’s bill poses significant risks to the nation’s strategic advantage, threatens tens of thousands of U.S. jobs, and offers little efficacy in combatting illicit actors in the crypto space.

The letter is also a response to a previous letter from Warren to the Blockchain Association, where she accused the association of mobilizing former defense, national security, and law enforcement officials to undermine bipartisan efforts in Congress to address the financing of terrorist organizations through cryptocurrencies.

🚨 JUST IN 🇺🇸 US Senator Elizabeth Warren drops a BOMBSHELL on the Blockchain Association!

Demanding the Blockchain Association expose information on ex-military and government hires—roles, pay, and all! 👀💼 Claiming the Blockchain Association has been working to undermine… pic.twitter.com/pSkanu8wUN

— Good Morning Crypto (@3TGMCrypto) December 19, 2023

Warren’s allegations were in reference to the Blockchain Association’s coordination of a visit to Capitol Hill to discuss the concerns raised in their initial letter.

Similar letters were also sent to Coinbase and the think tank Coin Center.

In their new letter to Warren, the Blockchain Association said that she questioned the motivations and integrity of numerous U.S. military and intelligence veterans without addressing the substance of their arguments.

Notably, the Chair of the Senate Banking Committee, Senator Sherrod Brown (D-OH), has not yet endorsed DAAMLA or any other legislation.

As the committee chair, Brown holds significant influence over whether crypto-related legislation advances from the committee to the full Senate for consideration.

DAAMLA Puts U.S. Jobs at Risk: Blockchain Association

The Blockchain Association’s letter argues that DAAMLA jeopardizes the nation’s strategic advantage, puts tens of thousands of U.S. jobs at risk, and has minimal impact on targeting illicit actors.

“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 said.

One contentious aspect of the bill is the inclusion of bitcoin miners and validators of other blockchains as responsible parties for conducting Know-Your-Customer (KYC) and Bank Secrecy Act (BSA) regulations.

Many industry experts argue that this approach is unworkable given the nature of blockchain technology.

In March, the Blockchain Association plans to coordinate another visit to Capitol Hill to engage policymakers in a detailed discussion about the issues surrounding the DAAMLA legislation.

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