The Digital Asset Anti-Money Laundering Act of 2023 (S.2669), a new crypto bill sponsored by Senators Elizabeth Warren and Roger Marshall, aims to "mitigate the risks that digital assets pose to our national security by closing loopholes and bringing the digital asset ecosystem into greater compliance with the anti-money laundering and countering the financing of terrorism." Earlier in February, the Blockchain Association - a non-profit organization of industry members located in Washington, D.C. - sent its second letter to Congress providing criticism of the bill. It warned that the bill's proposed regulatory restrictions would have a detrimental impact on the industry while having a negligible impact on curtailing bad actors. The Global Blockchain Business Council, the leading industry association for the blockchain and digital assets community, has created a detailed synopsis and explanation of DAAMLA.
Blockchain technology is inherently distributed in nature and combats models which rely upon centralized providers and networks. Accordingly, it provides a system that lends itself seamlessly to provide efficiency in borderless solutions, such as for payments.
The Blockchain Association's first letter predicts the potential repercussions crippling the growth of domestic investment and industry participation, driving such activity outside U.S. borders where it would be difficult for U.S. regulators to reach.
Congress calls for miners and validators to have BSA and KYC responsibility
Senator Warren's 'one pager' summary of the cypto bill states that the Digital Asset Anti-Money Laundering Act of 2023 (DAAMLA) would require actors across the blockchain-based ecosystem to be subject to U.S. regulatory compliance requirements:Blockchain technology is inherently distributed in nature and combats models which rely upon centralized providers and networks. Accordingly, it provides a system that lends itself seamlessly to provide efficiency in borderless solutions, such as for payments.
The Blockchain Association's first letter predicts the potential repercussions crippling the growth of domestic investment and industry participation, driving such activity outside U.S. borders where it would be difficult for U.S. regulators to reach.
