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Senator Marshall Withdraws Support from Warren’s Anti-Crypto Bill

AuthorEzra kaimenyi
Crypto News Author
Fact Checked by Wajeeh Khan
Last updated: July 26, 2024
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Senator Marshall Withdraws Support from Warren's Anti-Crypto Bill

Highlights:

  • Senator Marshall withdraws support for controversial DAAMLA bill
  • Strong opposition from the crypto industry and security officials
  • Winklevoss twins donate $1M to pro-crypto Senate candidate

Republican Senator Roger Marshall has rescinded his support for the Digital Asset Anti-Money Laundering Act (DAAMLA). This legislation, co-authored with Democratic Senator Elizabeth Warren, has faced significant controversy since its inception. Senator Marshall’s decision on July 24 casts doubt on the bill’s prospects.

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DAAMLA Faces Pushback Over Crypto Regulation Plans

Introduced to the Senate in July 2023, DAAMLA aims to tighten the regulatory framework around cryptocurrencies by incorporating them into the existing Anti-Money Laundering (AML) and counter-terrorism financing frameworks. The proposal suggests classifying cryptocurrency stakeholders as financial institutions, such as decentralized wallet providers, validators, and miners. Consequently, this classification would make them subject to the requirements of the Bank Secrecy Act.

Senator Elizabeth Warren has been a vocal proponent of the bill, highlighting the need to curb illegal activities facilitated by digital currencies. According to her, rogue states and criminals exploit cryptocurrencies to transfer and launder significant illicit funds. Despite these concerns, the bill has faced substantial resistance from the cryptocurrency community and several advocacy groups.

Strong Resistance to DAAMLA’s Regulatory Impact

The crypto industry, represented by entities like the Chamber of Digital Commerce, has vehemently opposed DAAMLA. Critics argue that the bill could lead to considerable financial losses for U.S. startups and might adversely affect Americans invested in digital currencies. They suggest that stringent regulations could push the burgeoning crypto industry out of the U.S., potentially escalating rather than mitigating national security risks.

Moreover, 80 former U.S. military and national security officials issued a warning in February. They warned that strict regulations might hinder police work and raise national security risks by pushing the cryptocurrency market abroad.

Crypto Influence Shapes U.S. Political Landscape

As Senator Warren prepares for her 2024 reelection campaign, her steadfast support for DAAMLA ignites debate. Consequently, this has attracted political opposition from John Deaton, a lawyer advocating cryptocurrencies. Deaton has declared his candidacy for the Republican ticket, aiming to challenge Warren’s seat with a platform that critiques her regulatory stance on cryptocurrencies.

Cameron and Tyler Winklevoss, co-founders of Gemini, have contributed $1 million in Bitcoin to John Deaton’s political campaign. Deaton is challenging Senator Elizabeth Warren in the Massachusetts Senate race. Tyler Winklevoss labeled Senator Warren as crypto’s “public enemy number one,” criticizing her as a critical figure in the Biden Administration’s restrictive stance on cryptocurrencies. Each brother donated $500,000, backing Deaton for his pro-crypto stance.

The Winklevoss twins have also supported former President Donald Trump by donating $2 million to his presidential campaign. This move underscores their continued engagement and influence in significant political activities. The departure of Senator Marshall from the bill’s support team impacts its legislative journey and signals ongoing tensions within U.S. governance over how to balance technological innovation with regulatory oversight.

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