Major Banks Assist Senators in Drafting Anti-Crypto Bill, Sparking Criticism and Debate
Summary:
Senators Roger Marshall and Elizabeth Warren have been working with large banks to shape their proposed Digital Asset Anti-Money Laundering Act, which aims to place cryptocurrency technology under strict U.S. banking regulations. After a video revealing the senators' collaboration with the American Bankers Association spread, Coinbase CEO Brian Armstrong criticized the senators, warning that being anti-crypto could be detrimental politically by 2024. Meanwhile, finance lawyer Scott Johnsson advised voters dissatisfied with Senator Warren to focus on vulnerable seats that supported her. The bill recently gained five new Senatorial co-sponsors, including three members of the Banking Committee. The Bank Policy Institute also supported the legislation. Critics of crypto often claim that digital assets are largely used for illicit activities, but these allegations ignore the prevalence of such activities in traditional banking.
Senators Roger Marshall and Elizabeth Warren of the United States have been utilizing the expertise of large banking institutions to aid them in shaping their aggressive proposal against crypto. Footage seen on X, an alternative to Twitter, on December 20, reveals Senator Marshall candidly admitting that him and Senator Warren enlisted help from the American Bankers Association (ABA), represented by the biggest lobbying group in the U.S. banking sector. Their aim was to structure the Digital Asset Anti-Money Laundering Act effectively.
The purpose of this Act, brought forward initially in December 2022, is to place non-custodial wallets, validators, and mining pools - all technological aspects of cryptocurrency - under the stringent financial regulations applicable in the United States. Senator Marshall disclosed in his dialogue that he and Senator Warren sought assistance and guidance from the ABA to carefully construct this Act. Furthermore, he alluded to a conversation Senator Warren had with the CEO of JPMorgan, Jamie Dimon, in which they concurred on the idea of cryptocurrency being a tool exploited by criminals. The video clip was obtained from a security-intelligence forum held by parliament earlier in the month.
Coincidentally, the CEO of Coinbase, Brian Armstrong, expressed his frustration toward Senators Warren and Marshall for advocating for banks. He cautioned that opposing crypto technologies could potentially be an unfavorable strategy in the political landscape of 2024.
Simultaneously, Scott Johnsson, a finance lawyer, advised that voters who are displeased with Senator Warren's stance should concentrate their efforts on influencing vulnerable seats supportive of her campaign over this past year. As of December 11, the bill added five Senatorial co-sponsors, three of whom belonged to the Banking Committee. The Bank Policy Institute, an advocacy group for U.S. banking, backed the anti-crypto legislation put forth by Senator Warren.
Claims are often made by critics of crypto that digital assets are primarily used for malevolent acts, disregarding numerous evidences stating otherwise. Detailed analysis by Chainalysis, a Blockchain platform, suggested that less than 0.2% of crypto is utilized for unlawful purposes. Advocates against crypto frequently dismiss the extent of illegal activities taking place in the sphere of traditional banking. For instance, JPMorgan is among the most penalized banks, incurring nearly $40 billion in fines for a variety of breaches since the year 2000, as per Violation Tracker reports.
Published At
12/20/2023 6:41:38 AM
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