Wednesday, May 22, 2024

Blockchain Association calls out Elizabeth Warren’s legislation on digital assets

Former officers with america authorities and navy have warned lawmakers in opposition to supporting an Anti-Cash Laundering invoice proposed by Massachusetts Senator Elizabeth Warren, citing nationwide safety issues.

In a Feb. 13 letter, 80 people — a lot of whom had been concerned with the U.S. navy or authorities — signed their names with the Blockchain Affiliation’s (BA’s) opposition to Senator Warren’s Digital Asset Anti-Cash Laundering Act (DAAMLA). In keeping with the letter, the laws hindered regulation enforcement and offered nationwide safety issues by “driving the vast majority of the digital asset trade abroad.”

“This shift might additionally result in elevated liquidity in unregulated offshore exchanges and a lack of precious experience and visibility for the U.S. within the blockchain realm,” mentioned the letter. “Additional, this laws, if applied, may have no significant impact on the overseas illicit actors it targets.”

The letter’s signatures included Coinbase Chief Coverage Officer Faryar Shirzad and former U.S. Military Reserve, U.S. Marine Corps, U.S. Air Power, U.S. Navy, and Justice Division members. The BA letter appealed to 6 lawmakers main the Home Monetary Companies Committee and Senate Banking Committee to “acknowledge [their] high-standing data of navy and public service.”

In keeping with the BA, the letter got here in response to a Dec. 18 letter from Senator Warren, wherein she claimed the crypto industry had a “small military of former protection, nationwide safety and regulation enforcement officers” geared toward stymieing regulation of digital property. The BA claimed the Massachusetts senator “questioned the motivations and integrity of scores of U.S. navy and intelligence veterans.”

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The DAAMLA invoice, which Senator Warren reintroduced to the U.S. Senate in July 2023, particularly targets illicit makes use of of crypto property for cash laundering and financing terrorism. Many organizations and people, together with the BA, have criticized the proposed legislation for exaggerating crypto’s function in funding terrorism and illicit actions.

“Digital property and the underlying know-how are pivotal to our nation’s strategic benefit,” mentioned the 80 people who signed the BA letter. “The Digital Asset Anti-Cash Laundering Act (DAAMLA) dangers our nation’s strategic benefit, threatens tens of 1000’s of U.S. jobs, and bears little impact on the illicit actors it targets.”

Within the wake of the Oct. 7 assault by Hamas on Israel, many U.S. lawmakers backed efforts against organizations with ties to the terrorist group, together with sanctions on linked crypto wallets. Cointelegraph reached out to Senator Warren’s workplace for remark however didn’t obtain a response on the time of publication.

Journal: Lawmakers’ fear and doubt drives proposed crypto regulations in US