Crypto Advocacy Group CDC Warns DAAMLA Bill Threatens US National Security and Economy
Summary:
The Chamber of Digital Commerce (CDC), a US-based crypto advocacy group, has called on the Senate Banking Committee to reject the controversial Digital Asset Anti-Money Laundering Act (DAAMLA). The CDC warns that the legislation represents a threat to US national security and the broader economy, stating that it could potentially lead to significant financial losses for US startups and savers. Critics also argue the bill lays out impractical compliance requirements for companies tasked with securing blockchain infrastructure. Other groups, like the Blockchain Association, have similarly voiced concerns about the potential negative effects of the DAAMLA, asserting that digital assets offer a strategic advantage to the US.
The crypto advocacy group based in the US, the Chamber of Digital Commerce (CDC), has implored the head of the Senate Banking Committee to dismiss an Anti-Money Laundering bill that has drawn ire from numerous industry figures. On February 20, the CDC denounced Senator Elizabeth Warren and Senate Banking Committee Chair Sherrod Brown for their intent to "snuff out the entire [crypto] industry" through their consideration of the Digital Asset Anti-Money Laundering Act (DAAMLA). Hearings are due to be held by the Senate Banking Committee to discuss the potential adoption of the bill, which has been labelled by Perianne Boring, the CEO of the CDC, as a “direct threat to the national security of the U.S. and to the larger economy” in a communique addressed to Brown. The adoption of the bill "will eliminate hundreds of billions of dollars in the value of U.S. startups, and devastate the savings of numerous Americans who have legally invested in this type of asset," according to Boring, and would represent a de facto "ban on digital assets with compliance expectations that are not only unreasonable, but also unachievable for those responsible for maintaining blockchain infrastructure." Boring also compared the implications of the proposed legislation to an ink manufacturer being required to track every individual who ever touched a dollar bill printed with their ink, worldwide.
It's not only the CDC who believe that the DAAMLA poses an imminent danger to the national U.S. security by potentially compelling certain parts of the crypto industry to relocate to foreign soil. Earlier this month on Feb 13, a letter was dispatched to Senator Brown and other American legislatures by the Blockchain Association, stating that digital assets are a "strategic advantage” to the U.S. In July 2023, Senator Warren proposed the DAAMLA to the U.S. Senate, a little over two months before an attack on Israel by Hamas brought the issue of terrorist financing into sharper focus. The suggested legislative measures specifically aim to curtail the illegal use of crypto assets involved in money laundering and the financing of terrorism. However, the bill has faced criticism for its alleged exaggeration of the involvement of digital assets in unlawful activities and its imposition of impractical obligations on companies. Brown and Warren, Senators for Ohio and Massachusetts respectively, are both up for reelection in 2024, with their terms concluding in 2031. On Feb 20, John Deaton, a lawyer friendly to crypto, announced his intention to run as a Republican and challenge Senator Warren for her seat.
Published At
2/21/2024 12:55:37 AM
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