Republican Senator Roger Marshall Backs Out of Controversial Crypto Bill

CryptoNews.com

2024-07-25 21:41:50

Ruholamin Haqshanas

Last updated:

July 26, 2024, 01:41 EDT | 2 min read

Republican Senator Roger Marshall has withdrawn his support for the Digital Asset Anti-Money Laundering Act (DAAMLA), an anti-crypto bill he co-authored with Democrat Senator Elizabeth Warren.

Marshall’s withdrawal, announced on July 24, leaves the bill with 18 remaining supporters, as documented in the Congressional directory.

Introduced in December 2022, the DAAMLA bill has been a subject of heated debate.

DAAMLA Sought to Integrate Crypto to AML Framework

Senator Warren, a vocal critic of the cryptocurrency industry, argued that digital assets were being exploited by “rogue nations, oligarchs, drug lords, and human traffickers” to launder vast sums of illicit funds.

The bill sought to integrate the crypto industry into existing Anti-Money Laundering (AML) and counter-terrorism financing frameworks, categorizing entities like decentralized wallet providers, validators, and miners as financial institutions subject to the Bank Secrecy Act.

The reintroduction of the DAAMLA bill to the Senate in July 2023 further intensified the controversy.

Crypto advocates argue that the legislation overstates the role of digital assets in illegal activities and threatens to stifle the burgeoning U.S. crypto sector.

The Chamber of Digital Commerce (CDC), a U.S.-based crypto advocacy group, voiced strong opposition, urging the Senate Banking Committee to dismiss the bill.

The CDC warned that passing the legislation could “erase hundreds of billions of dollars in value for U.S. startups” and devastate the investments of Americans who legally hold cryptocurrencies.

In addition to the CDC, a coalition of 80 former U.S. military and national security officials expressed concerns.

In a letter dated February 13, they cautioned lawmakers that the DAAMLA bill might inadvertently hinder law enforcement and escalate national security risks by driving the digital asset industry abroad.

Senator Warren, who is seeking reelection in 2024, continues to champion the bill despite mounting opposition.

Her campaign has drawn a challenger in pro-crypto lawyer John Deaton, who announced his Republican candidacy with the intention to unseat Warren.

7 U.S. States Challenge SEC’s Crypto Regulations

As reported, a coalition of seven U.S. states has come together to challenge the Securities and Exchange Commission’s (SEC) regulation of cryptocurrency.

Led by Iowa Attorney General Brenna Bird, the states have filed an amicus brief arguing that the SEC’s attempt to regulate cryptocurrencies constitutes a “power grab” that would stifle innovation, harm the crypto industry, and exceed the agency’s authority.

The coalition includes Arkansas, Indiana, Kansas, Montana, Nebraska, with Oklahoma becoming the latest state to join.

Earlier this year, SEC Commissioner Hester Peirce said that the regulatory agency is currently operating in an “enforcement-only mode” when it comes to the regulation of cryptocurrencies.

Peirce, known for her crypto-friendly stance among the SEC’s five commissioners, acknowledged the burden placed on industry participants who constantly worry about avoiding legal disputes.

“If we had clearer rules, you could focus on building,” she said.

Last week, the SEC closed its three-year investigation into Hiro s.

The agency’s conclusion of the investigation comes just a day after it closed a separate case involving stablecoin issuer Paxos, marking another instance where the regulatory body has opted not to pursue enforcement actions against crypto entities.

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