Blockchain Association Critiques Elizabeth Warren’s Digital Assets Legislation

A group of former officials from the US government and military have raised concerns about an Anti-Money Laundering bill put forward by Massachusetts Senator Elizabeth Warren. In a letter to lawmakers, 80 individuals, many of whom had served in the military or held positions in the government, expressed their opposition to the Digital Asset Anti-Money Laundering Act (DAAMLA) proposed by Senator Warren. The letter argued that the legislation would hinder law enforcement efforts and pose national security risks by driving the digital asset industry overseas. It also claimed that the bill would have no significant impact on the foreign actors it seeks to target.

The signatories of the letter included Coinbase Chief Policy Officer Faryar Shirzad and former members of the US Army Reserve, US Marine Corps, US Air Force, US Navy, and Justice Department. They appealed to six lawmakers leading the House Financial Services Committee and Senate Banking Committee, highlighting their records of military and public service. The letter was a response to a previous letter from Senator Warren, in which she accused the crypto industry of using former defense, national security, and law enforcement officials to resist regulation. The Blockchain Association (BA), which organized the letter, claimed that the senator had questioned the motivations and integrity of many US military and intelligence veterans.

Senator Warren reintroduced the DAAMLA bill to the Senate in July 2023. The bill focuses on combatting the illicit use of crypto assets for money laundering and terrorism financing. It has faced criticism from various organizations and individuals, including the BA, for overstating the role of crypto in funding illegal activities. The 80 individuals who signed the letter argue that the proposed legislation puts the US’s strategic advantage at risk, threatens thousands of jobs, and does little to address the illicit actors it targets.

Following an attack by Hamas on Israel, which occurred on October 7, lawmakers in the US have been supporting efforts to impose sanctions on organizations with ties to the terrorist group, including those involving cryptocurrency wallets. reached out to Senator Warren’s office for comment, but no response had been received at the time of publication.