Blockchain Association Cautions That Warren’s Anti-Crypto Bill Poses Risks to US Employment and Competitive Edge

The Blockchain Association has dispatched a second letter to the House Financial Services Committee and Senate Banking Committee, voicing apprehensions regarding a bill introduced by Senator Elizabeth Warren.

The proposed legislation, known as the Digital Asset Anti-Money Laundering Act of 2023 (DAAMLA), has received backing from 19 additional Senators as co-sponsors, raising concerns within the cryptocurrency sector.

In November 2023, the Blockchain Association initially sent a letter signed by 40 individuals, including former U.S. military, national security, and intelligence personnel.

This latest letter, however, features 80 signatories from individuals with comparable backgrounds.

Policy Implications of Warren’s Anti-Crypto Legislation

While the initial letter sought to counter what was perceived as an exaggerated narrative connecting cryptocurrencies to the 2023 Hamas-led assault on Israel, the new letter redirects attention to the policy ramifications of Warren’s DAAMLA legislation.

The Blockchain Association asserts that Warren’s bill presents considerable risks to the nation’s strategic position, jeopardizes tens of thousands of U.S. jobs, and has limited effectiveness in addressing illicit activities within the cryptocurrency realm.

This letter also serves as a reply to a prior correspondence from Warren to the Blockchain Association, in which she accused the organization of rallying former defense, national security, and law enforcement officials to undermine bipartisan initiatives in Congress aimed at tackling the financing of terrorist groups through cryptocurrencies.

JUST IN US Senator Elizabeth Warren drops a BOMBSHELL on the Blockchain Association!

Demanding the Blockchain Association disclose information on ex-military and government hires—roles, pay, and all! Claiming the Blockchain Association has been working to undermine… pic.twitter.com/pSkanu8wUN

— Good Morning Crypto (@3TGMCrypto) December 19, 2023

Warren’s claims referred to the Blockchain Association’s organization of a visit to Capitol Hill to address the concerns highlighted in their initial letter.

Similar letters were also directed to Coinbase and the think tank Coin Center.

In their recent letter to Warren, the Blockchain Association stated that she questioned the motivations and integrity of numerous U.S. military and intelligence veterans without engaging with the substance of their arguments.

Importantly, the Chair of the Senate Banking Committee, Senator Sherrod Brown (D-OH), has yet to endorse DAAMLA or any other related legislation.

As the committee chair, Brown wields considerable influence over whether crypto-related legislation progresses from the committee to the full Senate for deliberation.

DAAMLA Puts U.S. Jobs at Risk: Blockchain Association

The Blockchain Association’s letter contends that DAAMLA endangers the nation’s strategic advantage, threatens tens of thousands of U.S. jobs, and has minimal impact on addressing illicit actors.

“The Digital Asset Anti-Money Laundering Act (DAAMLA) risks our nation’s strategic advantage, threatens tens of thousands of U.S. jobs, and bears little effect on the illicit actors it targets,” the letter stated.

A contentious element of the bill is the classification of bitcoin miners and validators of other blockchains as accountable parties for implementing Know-Your-Customer (KYC) and Bank Secrecy Act (BSA) regulations.

Numerous industry experts argue that this approach is impractical given the characteristics of blockchain technology.

In March, the Blockchain Association intends to organize another visit to Capitol Hill to engage policymakers in a comprehensive discussion regarding the issues related to the DAAMLA legislation.

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