The Digital Asset Anti Money Laundering Act (S. 2669) is pending legislation that aims to stymie bad actors’ use of crypto to cover their tracks. The bill was introduced by Senator Elizabeth Warren, a well-known digital asset skeptic. Warren sits on the Senate Banking Committee, which would be the natural Committee to weigh on the merits of the legislation. As of yet, the bill has not been entered into the Committee for debate.
The bill has a long list of co-sponsors that continues to grow, now numbering 19. Importantly, there are two Republic co-sponsors, thus helping to support potential passage. Republicans have been more supportive of digital assets and Fintech innovation in general.
Earlier this month, the Chamber of Digital Commerce, a group that advocates on behalf of digital asset innovation, commenced a petition to push back on the legislation. As of today, a bit over ten thousand individuals have signed the document on Change.org.
The Chamber claims that the legislation “threatens to stifle innovation, harm job prospects, and undermine the U.S. economy in a sector that is burgeoning with potential.”
It is described as a “crypto ban” that will push the digital asset industry outside the US to more supportive jurisdictions – a phenomenon that has already gained traction.
Part of the challenge is recent reports that nefarious individuals have leveraged crypto to avoid sanctions or to finance groups like Hamas. Even crypto supporters have bulked at these instances of criminal activity.
While all industry advocates accept and want prudent regulations, it is a question of degree. The bill currently asigns much responsibility to the US Department of Treasury to review and then create new rules to control and regulate crypto.
“@SenWarren has misled the American people as well as the U.S. Congress on #crypto.” –@PerianneDC
Take action now! Sign the petition to stop Sen. Warren’s Crypto Ban Bill: https://t.co/uPpeiJBv9N pic.twitter.com/epioZpd7L8
— Chamber of Digital Commerce (@DigitalChamber) December 29, 2023