Republican senator Roger Marshall has been the first senator to back away from the crypto bill he once supported.
Roger Marshall announced his withdrawal from backing the Digital Asset Anti-Money Laundering Act of 2023 on Tuesday, according to records from the legislation.
The bill, reintroduced in the Senate on July 27, 2023, by Senator Elizabeth Warren, Roger Marshall, and others, gained significant bipartisan support with 18 other lawmakers joining from different political backgrounds.
Cryptocurrency has emerged as a political topic lately, with former president Donald Trump promising to ease regulations and safeguard innovation should he win the presidency in November.
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The Biden administration has faced criticism for its strict stance on the industry, particularly under the leadership of Securities and Exchange Commission Chairman Gary Gensler.
Marshall, who helped introduce the bill a year ago, has been a vocal opponent of cryptocurrency, accusing it of being a “threat to national security,” including stablecoin provider Tether.
In April, Marshall and Warren wrote to the Department of Defense stating that there was a lack of oversight in Tether’s role in helping rogue countries bypass U.S. sanctions.
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The reason for Marshall’s withdrawal from supporting the bill is unclear, and his office has not yet responded to a request for comment.
The bill aims to make the crypto industry more in line with existing regulations against money laundering and terrorism financing.
Specifically, the bill makes digital asset providers, such as unhosted wallet providers, miners, and validators, financial entities subject to Bank Secrecy Act compliance.
It requires the Financial Crimes Enforcement Network to create rules for reporting significant overseas digital asset holdings.
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The bill also seeks to establish rules for financial institutions to reduce the risks associated with technologies that increase anonymity.
Opponents of the bill argue that it places too many unnecessary compliance obligations on those in the crypto industry, could hinder innovation, and might move activities overseas.
They also raise concerns about privacy, economic effects, and possible unintended outcomes, including encouraging users to turn to unregulated platforms, which could counteract the bill’s goal of enhancing security.
[…] April, Marshall and Warren wrote a letter to the Department of Defense, alleging that Tether lacked proper oversight in […]