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Digital asset industry leaders rally against Warren’s regulatory proposal

source-logo  cryptopolitan.com 13 February 2024 15:28, UTC

In a recent development in the ongoing debate surrounding digital assets and regulation, the Blockchain Association (BA) has expressed its opposition to Senator Elizabeth Warren’s proposed Digital Asset Anti-Money Laundering Act (DAAMLA).

Eighty individuals, including former officials from the United States government and military, have signed a letter to U.S. lawmakers asserting that digital assets are crucial for the country’s strategic advantage.

Digital asset industry leaders sound alarm on Warren’s bill

The letter, addressed to key members of the House Financial Services Committee and Senate Banking Committee, highlights concerns regarding the potential impact of Senator Warren’s legislation.

1/ Today, we sent a new letter to Congress, supported by a doubled 80+ coalition of former military and national security professionals urging members to reconsider support for proposed legislation that could cripple the domestic digital assets industry.https://t.co/6bSarhpVP4 pic.twitter.com/uxIqyGp1AY

— Blockchain Association (@BlockchainAssn) February 13, 2024

Signatories argue that the proposed bill could hinder law enforcement efforts and pose national security risks by driving a significant portion of the digital asset industry overseas. They emphasize that such a shift could lead to increased liquidity in unregulated offshore exchanges, diminishing the United States’ influence and expertise in the blockchain sector.

Opposition to regulatory measures

The opposition letter contends that Senator Warren‘s proposed legislation would have limited effectiveness in targeting foreign illicit actors while potentially stifling innovation and economic growth within the digital asset industry.

It refutes claims made by Senator Warren in a previous communication, where she suggested that former defense, national security, and law enforcement officials were attempting to obstruct regulation of digital assets.

Industry voices unite

Among the signatories are prominent figures within the digital asset sector, including Coinbase Chief Policy Officer Faryar Shirzad, as well as individuals with backgrounds in the U.S. military, including the Army Reserve, Marine Corps, Air Force, Navy, and the Justice Department.

The letter underscores the collective concern within the industry regarding the potential ramifications of Senator Warren’s proposed legislation and urges lawmakers to consider the perspectives of those with significant experience in both military and public service roles.

Implications for the blockchain realm

The opposition letter from the Blockchain Association signals a growing rift between proponents of digital asset innovation and lawmakers advocating for stricter regulation. The ongoing debate underscores the complexity of balancing regulatory measures with the need to foster innovation and maintain national security interests.

As the discussion surrounding digital asset regulation continues to evolve, the opposition voiced by the Blockchain Association and its signatories underscores the diverse perspectives within the industry.

With national security concerns and potential economic implications at stake, the debate over Senator Warren’s proposed legislation highlights the challenges of reconciling competing interests in the evolving landscape of digital finance.

As lawmakers weigh their decisions, the voices of industry stakeholders, former officials, and advocacy groups like the Blockchain Association are likely to play a significant role in shaping future policy directions.