US Senator Withdraws Support for Elizabeth Warren's Cryptocurrency Anti-Money Laundering Bill

Republican Senator Roger Marshall of Kansas has withdrawn his initial support for the controversial Digital Asset Anti-Money Laundering Act (DAAMLA), which he co-introduced with Democratic Senator Elizabeth Warren of Massachusetts. Marshall became the first co-sponsor to do so, but the bipartisan bill still has support from 18 other co-sponsoring senators.

Warren and Marshall first introduced the bill in December 2022, with the aim of strengthening anti-money laundering rules for digital assets in the United States. The bill proposes to expand the know-your-customer and anti-money laundering verification responsibilities to digital asset service providers, miners, validators, and other participants, in an effort to plug existing security loopholes in cryptocurrencies. Part of the anti-money laundering bill also proposes that the Treasury Department, the Securities and Exchange Commission, and the Commodity Futures Trading Commission establish new anti-money laundering review processes to compel digital asset entities to comply with the Bank Secrecy Act.