Crypto Industry and Former Officials Oppose New AML Bill

The Blockchain Association and ex-government professionals argue that the proposed legislation could harm the U.S. crypto sector and drive firms overseas.

• The Blockchain Association and 80 former national security and military professionals sent a letter to Congress opposing the Digital Asset Anti-Money Laundering Act (DAAMLA), claiming it threatens U.S. jobs and has little effect on targeted illicit actors.
• Senator Elizabeth Warren, who co-sponsored DAAMLA, argues the bill is essential for expanding anti-money laundering measures in the crypto industry, but faces pushback from the crypto community and former government officials.
• The bill could drive digital asset firms overseas, increasing liquidity in unregulated offshore exchanges and resulting in a loss of U.S. strategic advantage and blockchain expertise.
• Critics, including Michele Korver and Faryar Shirzad of Andreessen Horowitz and Coinbase respectively, defend their opposition to DAAMLA, emphasizing the need for a balanced conversation on digital assets and illicit finance.
• The Blockchain Association plans to coordinate another visit to Capitol Hill in March to discuss concerns with policymakers about the potential impacts of DAAMLA on the U.S. crypto industry.

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