Senator Warren’s Anti-Crypto Legislation Faces Challenge as Republican Co-Author Pulls Out

Senator Roger Marshall, co-author of Senator Warren’s Anti-crypto bill, has withdrawn his support, posing a significant setback for the legislation. 

Introduced by Democratic Senator Elizabeth Warren, the controversial legislation aims to fight the use of cryptocurrencies in drug trafficking, money laundering, and terrorism financing.

Senator Marshall’s withdrawal from pushing the bill could support Warren’s Republican counterparts.

Warren’s Digital Assets Anti-Money Laundering Act (DAAMLA) Loses Major Supporter

The official Congress website shows that Republican Senator from Kansas, Roger Marshall, Warren’s co-frontrunner in the DAAMLA, withdrew his support on July 24. 

Warren introduced the DAAMLA bill to the Senate in 2022 before re-introducing it in July 2023. This bill brings digital assets under the legal frameworks for counter-terrorism and anti-money laundering. 

The DAAMLA proposes that Congress classify several crypto service providers, including decentralized exchanges, wallet providers, validators, and miners, as financial institutions and bring them under the Bank Secrecy Act.

Senator Warren claims the bill will help prevent sanctioned nations, human traffickers, drug lords, and oligarchs from laundering money using cryptocurrencies. 

However, despite Warren’s push, the proposed legislation has met with stiff opposition from top industry players and crypto enthusiasts. Many say the bill could drive crypto startups away from the US.

The US Chamber of Digital Commerce cautioned that the proposed bill could wipe out billions of dollars in valuation from US-based startups. Such an occurrence will negatively impact American digital assets investors. 

Moreover, former military and security officials warned lawmakers against championing or supporting the said crypto bill. 

With Roger Marshall’s withdrawal, senators advocating for the bill have reduced it to 18, and more could withdraw. Being one of the DAAMLA’s key co-authors, Marshall’s withdrawal sparks concerns about the bill’s future. It also underscores the changing crypto regulatory landscape in the United States.

Crypto Industry Supports Pro-Crypto Lawyer Deaton Against Senator Warren

This development comes amid preparations for the 2024 US elections. Warren is also preparing for re-election in the upcoming election. She has an upcoming campaign in Massachusetts where she is up against John Deaton, a Republican Senate candidate and pro-crypto lawyer. 

Attorney John Deaton’s campaign to unseat anti-crypto Senator Warren has received significant support. The Winklevoss twins, Cameron and Tyler, founders of Gemini exchange, donated 16 Bitcoins, valued at over $1 million, to support Deaton’s quest. 

Deaton, famous for his unwavering support for crypto through various legal inputs, has received support from prominent industry players. He has been very vocal about his views regarding the regulatory stance of cryptocurrencies in the United States.

The lawyer has condemned Senator Warren, the US SEC, and other anti-crypto individuals’ actions against the industry. 

The substantial donation from Cameron and Tyler Winklevoss will bolster Deaton’s campaign. More importantly, it sends a clear message about the crypto community’s commitment and willingness to utilize every legitimate resource, including politics, to protect its interests.

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