Blockchain Association Voices Objections to Senator Warren’s Crypto AML Bill in Congressional Letter

The Blockchain Association, a group representing the U.S. cryptocurrency industry, recently sent a letter to Congress to share its concerns about a bill proposed by Senator Elizabeth Warren called the Digital Asset Anti-Money Laundering Act of 2023.

The letter warns that Senator Warren’s bill could harm the U.S. by risking its technology leadership, threatening many American jobs, and not effectively stopping the criminals it aims to target. The bill suggests stricter rules for those involved in cryptocurrencies, including miners and validators, by requiring more thorough checks to prevent money laundering and closing security gaps, such as transactions with unhosted wallets or foreign accounts.

The Blockchain Association fears these new rules could push the cryptocurrency industry out of the U.S., leading to a loss of expertise and making it harder for American law enforcement and national security to monitor and control. They argue that this could help illegal activities by moving them to places with fewer regulations.

This disagreement between Senator Warren and the Blockchain Association isn’t new. Senator Warren has accused the Blockchain Association of trying to weaken bipartisan efforts to tackle the use of cryptocurrencies in terrorist financing. The Blockchain Association has responded by saying claims about the terrorist group Hamas using cryptocurrencies have been exaggerated.