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FameEX Hot Topics | Senator Discloses American Bankers Association's Involvement in Crafting New Anti-Crypto Legislation

2023-12-20 16:37:00

Recent comments by Senator Roger Marshall have revealed that the American Bankers Association (ABA), a leading lobbying organization for the U.S. banking industry, played a significant role in helping draft the Digital Asset Anti-Money Laundering Act, a contentious anti-crypto bill co-sponsored by Senators Marshall and Elizabeth Warren. The bill, which was first introduced in December 2022, aims to subject various crypto technologies, including non-custodial wallets, validators, and mining pools, to stringent banking regulations in the United States.

The admission came to light through a video that emerged on December 20 on X, formerly known as Twitter, where Senator Marshall acknowledged seeking assistance from the American Bankers Association (ABA) in crafting the legislation. He stated, "The first thing that we did is that we went to the American Bankers Association and said 'help us craft this.'"

The Digital Asset Anti-Money Laundering Act has been a subject of controversy within the crypto community due to its strict regulatory approach to the industry. Senator Marshall also mentioned a meeting between Senator Warren and JPMorgan CEO Jamie Dimon, during which both reportedly concurred that cryptocurrencies were primarily used by criminals. The video was sourced from a parliamentary security-intelligence forum that took place earlier in the month.

The bill has been garnering support in Congress, with five new Senators signing on as co-sponsors on December 11, including three members of the Banking Committee. Additionally, the Bank Policy Institute (BPI), a U.S. banking advocacy group, has expressed its backing for the anti-crypto legislation introduced by Senator Warren.

Critics of anti-crypto legislation often argue that digital assets are unfairly associated with criminal activities. Data from blockchain analysis platform Chainalysis shows that less than 0.2% of cryptocurrency transactions are linked to illicit purposes. They also emphasize that traditional finance is not immune to criminal activity, citing examples of major banks facing significant fines for various violations. In response to the revelations, finance lawyer Scott Johnsson suggested that voters concerned about Senator Warren's stance on crypto should focus their efforts on vulnerable seats that have supported her anti-crypto agenda over the past year.

The involvement of the American Bankers Association in crafting anti-crypto legislation highlights the ongoing debate between regulators, lawmakers, and the crypto industry regarding the appropriate regulatory framework for digital assets. As the crypto industry continues to evolve, finding common ground between these stakeholders remains a complex challenge.

Disclaimer: The information provided in this section is for informational purposes only, doesn't represent any investment advice or FameEX's official view.

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