Former Government and Military Officials Challenge Senator Warren's Anti-Money Laundering Bill
Summary:
Massachusetts Senator Elizabeth Warren's Anti-Money Laundering proposal has faced strong opposition from 80 former military and government officials, who believe the proposed Digital Asset Anti-Money Laundering Act (DAAMLA) could pose significant national security risks and have little effect on illicit actors. They argue that the bill could push most of the digital asset industry overseas, increasing liquidity in unregulated offshore exchanges and impacting America's strategic advantage in the blockchain sector. Critics also claim that the legislation overstates the role of crypto in funding terrorism and other illegal activities.
An Anti-Money Laundering law proposal from Massachusetts Senator Elizabeth Warren has encountered opposition from a considerable number of past United States government and military officials, who have alerted members of Congress about potential risks in the area of national security. The Blockchain Association (BA), alongside 80 signatories, many of whom have military and government backgrounds, expressed their resistance to the Digital Asset Anti-Money Laundering Act (DAAMLA) in a letter dated February 13. The legislation, they argue, poses a threat to national security by potentially pushing a large portion of digital assets industry out of the country, which would in turn limit enforcement options. The signatories believe this could lead to a surge in non-regulated overseas exchanges and a loss of American expertise and insight in the blockchain sector. Additionally, they state that the proposed legislation would be ineffective against international illicit players it aims to target.
Among the signatories, were names like Faryar Shirzad, Coinbase's Chief Policy Officer and former members of the US Army Reserve, US Marine Corps, US Air Force, US Navy, and Justice Department. The group reached out to leading members of the House Financial Services Committee and Senate Banking Committee, calling for recognition of their high-ranking military and national service records. The BA claims that Senator Warren, in a letter from Dec. 18, accused the crypto sector of employing numerous ex-security officials to obstruct regulation of digital assets and also questioned the motives and integrity of multiple veterans of the military and intelligence.
Sen. Warren first proposed the DAAMLA bill to the US Senate in July 2023. The legislation specifically deals with illegal use of crypto assets for money laundering and terrorist funding. However, various individuals and organizations, including the BA, have voiced harsh criticism, accusing the proposed bill of overly emphasizing the role of crypto in backing terrorist activities and unauthorized actions.
The 80 signatories of the BA letter stressed the crucial role of digital assets and associated technology in securing the nation's strategic advantage, and warned that the DAAMLA initiative could endanger this advantage, potentially risk thousands of jobs and have minimal impact on illicit actors. Potential sanctions on crypto wallets linked to the terrorist group Hamas have received backing from many US lawmakers, following a Hamas-led attack on Israel on Oct. 7. At the time of going to print, Senator Warren’s office had not offered a comment in response to Cointelegraph's enquiry.
Published At
2/13/2024 7:58:58 PM
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