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Blockchain Association calls Senator Warren’s AML bill threat to US

source-logo  crypto.news 13 February 2024 11:06, UTC

Blockchain Association, an organization representing the interests of the crypto industry, sent a letter to the U.S. Congress criticizing Senator Elizabeth Warren’s AML bill.

The Blockchain Association’s recent appeal, dated Feb. 13, features 80 notable signatories, among them former government officials, financial crimes experts, intelligence officers, and military service members. They argue that the bill “On Combating Money Laundering in the Field of Digital Assets,” authored by Warren, endangers the United States.

The letter states that passage of the bill would deprive the U.S. of a strategic advantage. The message’s authors emphasized that this could also lead to the loss of tens of thousands of jobs.

“We are witnessing a pivotal moment where the future of digital asset development hangs in the balance. Policymakers must 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 post
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According to representatives of the Blockchain Association, the adoption of the bill will effectively put an end to the digital asset industry in the U.S. They note that this will cause a lag in technological innovation and limit competitiveness in a fast-growing sector.

In December, the largest lobbying organization of the U.S. banking industry took part in the development of Senator Warren’s AML bill. The politician is a long-time opponent of the digital asset industry. For example, after the U.S. Securities and Exchange Commission (SEC) approved spot Bitcoin ETFs, she criticized the agency.

The @SECgov is wrong on the law and wrong on the policy with respect to the Bitcoin ETF decision.

If the SEC is going to let crypto burrow even deeper into our financial system, then it's more urgent than ever that crypto follow basic anti-money laundering rules.

— Elizabeth Warren (@SenWarren) January 11, 2024

The bill proposes to extend anti-money laundering rules to the area of digital finance. If the law is adopted, KYC (Know Your Customer) standards will be applied to offline wallet providers, miners, validators and other participants in crypto networks. All financial institutions in the United States, including their anti-money laundering and anti-tax evasion reporting obligations, will be subject to increased scrutiny.

Read more: Blockchain Association addresses Senator Elizabeth Warren’s crypto hiring concerns