Senator Warren's Anti Crypto Bill Faces Setback As Co-Author Withdraws

Highlights

Senator Roger Marshall, a Republican co-author, withdraws support for Senator Warren's DAAMLA.
The bill faces strong opposition from crypto advocates and industry experts.
Senator Warren’s 2024 reelection campaign faces challenges from pro-crypto lawyer John Deaton.

The controversial Digital Asset Anti-Money Laundering Act (DAAMLA) has hit a significant roadblock. Senator Roger Marshall, a Republican co-author of the crypto bill, has withdrawn his support, dealing a blow to the anti-crypto legislation championed by Democratic Senator Elizabeth Warren.

Senator Marshall Withdraws Support for Senator Warren’s DAAMLA

Senator Roger Marshall, a Republican from Kansas, has withdrawn his support for the Digital Asset Anti-Money Laundering Act (DAAMLA), a crypto bill he co-authored with Democratic Senator Elizabeth Warren in 2022. This development, which occurred on July 24, marks a significant setback for the controversial anti-crypto legislation.

The DAAMLA bill, reintroduced to the Senate in July 2023, aims to bring the cryptocurrency industry under existing Anti-Money Laundering and counter-terrorism financing frameworks. It proposes classifying a wide range of crypto service providers, including decentralized wallet providers, validators, and miners, as financial institutions subject to the Bank Secrecy Act.

Senator Warren has argued that the bill is necessary to combat the use of cryptocurrencies by “rogue nations, oligarchs, drug lords, and human traffickers” for money laundering. However, the proposed legislation has faced strong opposition from crypto advocates and industry experts.

The Chamber of Digital Commerce has warned that the bill could “erase hundreds of billions of dollars in value for US startups” and negatively impact American crypto investors. Additionally, 80 former military and national security officials have cautioned lawmakers against supporting the crypto bill.

With Marshall’s withdrawal, the number of senators supporting the bill has dropped to 18. This development comes as Senator Warren prepares for her 2024 reelection campaign in Massachusetts, where she faces a challenge from pro-crypto lawyer John Deaton.

The withdrawal of a key co-author raises questions about the bill’s future and highlights the ongoing debate surrounding cryptocurrency regulation in the United States.

Also Read: Ethereum Foundation Moves 92,500 ETH, Ether ETF Outflows Surge

Winklevoss Twins’ Support for Deaton’s Campaign

In a related development, Cameron and Tyler Winklevoss have made a significant contribution to John Deaton’s campaign to unseat Senator Warren. The twins donated 16 Bitcoin, worth approximately $1 million, to support Deaton’s bid.

This generous contribution demonstrates the Winklevoss twins‘ commitment to backing a crypto-friendly candidate they believe will advance the interests of the cryptocurrency industry. John Deaton, known for his advocacy of cryptocurrencies and his legal representation of the crypto industry, has received endorsements from several prominent figures and organizations in the crypto space.

Deaton has been vocal in his opposition to what he perceives as unjust actions by Senator Warren and her supporters against the crypto industry. This substantial donation from the Winklevoss twins not only boosts Deaton’s campaign financially but also sends a strong message about the crypto community’s willingness to engage in political processes to protect their interests.

Also Read: BlackRock Crypto Chief Denies Chances Of Solana, XRP ETF Approval

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