Co-Sponsor Senator Behind Elizabeth Warren’s Crypto Ban Bill S2669 Withdraws His Support
The Digital Asset Anti-Money Laundering Act of 2023 has yet to pass the Senate.
- The bill aims to classify “crypto participants” as “financial institutions,” subjecting miners, validators, and wallet providers to the same regulations.
- The bill mandates that U.S. individuals with over $10,000 in cryptocurrency report to FinCEN.
- Opponents argue that the bill would shift crypto leadership to countries like China, Russia, North Korea, and Iran.
In a rare move, Senator Roger Marshall has withdrawn his support for his own bill, the “Crypto Ban” Bill S2669, officially known as the Digital Asset Anti-Money Laundering Act of 2023, following immense community pressure.
The bill would have effectively imposed a backdoor ban on blockchain, making it unfeasible for miners, validators, and other participants to comply.
Senator Elizabeth Warren introduced the bill, which still has 18 co-sponsors. However, Senator Roger Marshall was the first to withdraw his support, potentially signaling that more co-sponsors might follow suit.
Why the Bill Matters
The bill primarily aims to classify “crypto participants” as “financial institutions,” thereby subjecting them to the same regulations. This classification would encompass not only miners and validators but also wallet providers.
If passed, the bill would require entities to file reports for all transactions over $10,000 and report any activities that might indicate money laundering or tax evasion. Opponents argue that this would hinder their ability to conduct business, as they are not equipped to meet such stringent requirements.
The bill would also mandate that individuals in the U.S. with over $10,000 in cryptocurrency report to the Financial Crimes Enforcement Network (FinCEN). Despite its bipartisan support, the bill has never passed the Senate, keeping it far from becoming law.
Pushback Against Crypto Ban Bill S2669
Advocacy groups like the Chamber of Digital Commerce have issued a letter to Senator Sherrod Brown, highlighting the potential harm the bill could inflict on the crypto industry. They strongly advise against its passage, arguing that it would erase hundreds of billions of dollars in value for U.S. startups and devastate the savings of countless Americans who have legally invested in cryptocurrency.
“S.2669 represents an effective prohibition on digital assets, setting forth compliance requirements that are not only impractical but also unattainable for organizations tasked with securing blockchain infrastructure”
The group also contends that the bill would cede leadership in the crypto sector to countries like China, Russia, North Korea, and Iran, which are eager to exploit the opportunity.
