Republican U.S. Senator Roger Marshall withdrew from co-sponsoring the Digital Asset Anti-Money Laundering Act of 2023 (DAAMLA) on July 24. The DAAMLA bill introduced by Roger Marshall is widely seen as unfriendly to cryptocurrencies, and Republican presidential candidate Trump dropped his support for DAAMLA this year after he became a strong supporter of cryptocurrencies.
(Crypto banks are complicit in FTX? Congress questioned Silvergate’s procedural misconduct and will promote the Digital Asset Anti-Money Laundering Act DAAML)
What is DAAMLA? Bipartisan anti-encryption legislation
As co-sponsors, Republican Senator Roger Marshall and Democratic Senator Elizabeth Warren proposed the "Digital Asset Anti-Money Laundering Act of 2022" in December 2022. At the time, Marshall said: “After the 9/11 terrorist attacks in 2001, our government implemented meaningful reforms to help banks remove bad actors from the U.S. financial system. Applying these similar policies to cryptocurrency exchanges will Prevent digital assets from being misused to fund illegal activities without restricting access to law-abiding U.S. citizens.”
The bill includes:
1. Bank Secrecy Act (BSA) responsibilities, including KYC requirements, extend to digital asset wallet providers, miners, validators and other money services businesses
Identity Verification: Require banks and money services businesses (MSBs) to verify customer and counterparty identities, maintain records, and submit reports on digital asset transactions involving non-custodial wallets or wallets hosted in non-BSA compliant jurisdictions
Prohibition of anonymity-enhancing technologies: Financial institutions are prohibited from using anonymity-enhancing technologies such as coin mixers.
Strengthening BSA Compliance Enforcement: Proposed Anti-Money Laundering and Counter-Terrorism Financing (AML/CFT) Compliance Inspection and Review Process
Expanded Foreign Bank Account Reporting Rules: Includes digital assets, requiring Americans who conduct digital asset transactions worth more than $10,000 through one or more offshore accounts to file an FBAR (Foreign Bank and Financial Account Report) with the IRS.
Digital Asset ATM Regulation: Digital Asset ATM owners and administrators regularly submit and update the physical addresses of ATMs they own or operate and verify customer identities.
Elizabeth Warren reintroduced the DAAMLA bill to the Senate in July 2023, with Marshall still serving as a co-sponsor.
(Anti-encryption congresswoman Elizabeth Warren said that some countries are using cryptocurrency to evade sanctions, and was slapped in the face by community notes)
Blockchain industry opposes passage of DAAMLA citing “national security reasons”
On February 14, 2024, the American Blockchain Association wrote a letter to Congress asking lawmakers not to pass DAAMLA. The letter mentioned that the bill will hinder future innovation in digital assets, enhance the government's ability to monitor citizens, and give up the United States' advantage in the competition of digital asset technology. The letter was supported by 80 former military and national security figures.
1/ Today, we sent a new letter to Congress, supported by a doubled 80+ coalition of former military and national security professionals urging members to reconsider support for proposed legislation that could cripple the domestic digital assets industry.https://t.co/6bSarhpVP4 pic.twitter.com/uxIqyGp1AY
— Blockchain Association (@BlockchainAssn) February 13, 2024
The 2024 election is coming! Republicans throw their weight behind cryptocurrencies
The U.S. Republican Party announced the 2024 Republican Party Platform in July. Chapter 3 mentioned that "the Republican Party will end the Democratic Party's illegal and un-American crackdown on cryptocurrency and oppose the establishment of a central bank digital currency (CBDC). We will defend Bitcoin mining." rights to ensure that every American has the right to independently manage their digital assets and conduct transactions without government monitoring and control.” On July 22, cryptocurrency-friendly Republican Senator Cynthia Lummis reported that she would promote it. New bill to list Bitcoin as a U.S. reserve asset.
(Big things are about to happen? Crypto-friendly congressman Cynthia Lummis is rumored to push for U.S. Bitcoin reserve legislation)
Roger Marshall has said in the past that cryptocurrencies would exacerbate the problem of dark web drug trafficking, but he withdrew from an anti-cryptocurrency bill he had authored before the election after Republicans poured out support for cryptocurrencies. After Roger Marshall withdrew, 18 senators still supported the bill, including 16 Democrats, one independent and one Republican. This year’s election factors are significantly changing the encryption stance of American politicians. Even the Democratic Party’s camp is reportedly actively consulting on encryption issues.
(Supplementary information: Check out the encryption stance of US politicians)
(Mark Cuban: He Jinli’s team has consulted on a number of encryption issues)
This article Republicans go all out to be crypto-friendly! Members of the same party voluntarily withdraw from the anti-encryption bill DAAMLA first appeared on Chain News ABMedia.
