US Senator Withdraws Support for Controversial Elizabeth Warren’s Crypto Anti-Money Laundering Bill
In a significant shift within the U.S. legislative parliament, Senator Roger Marshall, a Republican from Kansas, has withdrawn his support for the Digital Asset Anti-Money Laundering Act (DAAMLA), a bill he co-authored with Democratic Senator Elizabeth Warren.
Marshall’s decision, recorded on July 24, marks a major setback for the bill, which aims to tighten anti-money laundering (AML) rules for the cryptocurrency industry.
Marshall’s withdrawal leaves 18 senators still backing the DAAMLA, which was initially introduced in December 2022.
The bill seeks to impose rigorous AML and Know Your Customer (KYC) regulations on digital asset service providers, including miners, validators, and decentralized wallet providers.
Notably, DAAMLA intends to curb the use of cryptocurrencies for illicit activities by bringing the crypto sector under the purview of existing financial regulations like the Bank Secrecy Act.
Despite its intentions, the bill has faced significant opposition from the crypto industry, arguing that its provisions would stifle innovation and drive the industry overseas due to overregulation.
Senator Warren, a staunch critic of the crypto industry, argued that the bill was necessary to prevent cryptocurrencies from being exploited by bad actors.
Warren reintroduced the bill in July 2023 with backing from the Bank Policy Institute, representing major financial institutions like Bank of America and Citibank, which supported expanding AML frameworks to cover digital assets.
The Blockchain Association, representing U.S. crypto interests, expressed concerns that the bill would undermine the nation’s strategic advantage, threaten jobs, and have minimal impact on the illicit activities it targets.
In February, 80
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