Republican Senator Roger Marshall Withdraws Support for Disputed Cryptocurrency Legislation

Republican Senator Roger Marshall has retracted his endorsement of the Digital Asset Anti-Money Laundering Act (DAAMLA), an anti-crypto legislation he co-created with Democrat Senator Elizabeth Warren.

Marshall’s retraction, revealed on July 24, reduces the bill’s support to 18 backers, as noted in the Congressional directory.

Initially introduced in December 2022, the DAAMLA bill has sparked significant debate.

DAAMLA Aimed to Incorporate Crypto into AML Framework

Senator Warren, a prominent critic of the cryptocurrency sector, contended that digital assets were being misused by “rogue nations, oligarchs, drug lords, and human traffickers” to launder substantial amounts of illicit money.

The legislation aimed to incorporate the crypto sector into existing Anti-Money Laundering (AML) and counter-terrorism financing regulations, classifying entities such as decentralized wallet providers, validators, and miners as financial institutions governed by the Bank Secrecy Act.

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

Proponents of cryptocurrency argue that the legislation exaggerates the involvement of digital assets in unlawful activities and poses a risk to the growing U.S. crypto industry.

The Chamber of Digital Commerce (CDC), a U.S.-based crypto advocacy organization, expressed strong disapproval, urging the Senate Banking Committee to reject the bill.

The CDC cautioned that enacting the legislation could “erase hundreds of billions of dollars in value for U.S. startups” and severely impact the investments of Americans who legally possess cryptocurrencies.

Alongside the CDC, a coalition of 80 former U.S. military and national security officials raised concerns.

In a letter dated February 13, they warned lawmakers that the DAAMLA bill could unintentionally impede law enforcement and heighten national security threats by pushing the digital asset industry overseas.

Senator Warren, who is campaigning for reelection in 2024, continues to advocate for the bill despite increasing opposition.

Her campaign faces a challenger in pro-crypto attorney John Deaton, who has declared his Republican candidacy with the goal of unseating Warren.

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

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

Led by Iowa Attorney General Brenna Bird, the states have submitted an amicus brief asserting that the SEC’s efforts to regulate cryptocurrencies represent a “power grab” that would hinder innovation, damage the crypto industry, and exceed the agency’s jurisdiction.

The coalition comprises Arkansas, Indiana, Kansas, Montana, Nebraska, with Oklahoma being the most recent state to join.

Earlier this year, SEC Commissioner Hester Peirce remarked that the regulatory agency is currently functioning in an “enforcement-only mode” regarding cryptocurrency regulation.

Peirce, recognized for her crypto-friendly perspective among the SEC’s five commissioners, acknowledged the pressure placed on industry participants who are continually concerned about avoiding legal conflicts.

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

Last week, the SEC concluded its three-year investigation into Hiro Systems.

The agency’s resolution of the investigation follows just a day after it wrapped up a separate case involving stablecoin issuer Paxos, marking another occasion where the regulatory body chose not to pursue enforcement actions against crypto entities.

The post Republican Senator Roger Marshall Backs Out of Controversial Crypto Bill appeared first on Cryptonews.