Warren vs. crypto investors – Battle royale over anti-crime bill

The crypto industry is currently intensifying its opposition against Senator Elizabeth Warren’s proposed Anti-Crime Bill, which has sparked significant controversy and debate within the crypto community. This legislative proposal, known as the Digital Asset Anti-Money Laundering Act of 2023 (DAAMLA), has drawn widespread criticism from various stakeholders in the blockchain and cryptocurrency space.

The industry’s concerns revolve around the bill’s potential ramifications, particularly regarding its implications for privacy, innovation, and regulatory overreach. As tensions escalate, key figures within the crypto sector, such as attorney John Deaton, are actively challenging Senator Warren’s stance by entering into political arenas, further emphasizing the significance of this contentious issue. 

Warren faces a crypto blitz

The Chamber of Digital Commerce (CDC), a crypto advocacy group based in the United States, has encouraged the chair of the Senate Banking Committee not to adopt an Anti-Money Laundering measure that industry leaders have widely criticized.

In a Feb. 20 X post, the CDC claimed Senator Elizabeth Warren and Senate Banking Committee Chair Sherrod Brown were “trying to kill the entire [digital asset] industry” by proposing the Digital Asset Anti-Money Laundering Act (DAAMLA). The Senate Banking Committee will hold hearings on the bill, which CDC founder and CEO Perianne Boring described as a “clear and present danger to U.S. national security and the broader economy” in a letter to Brown.

Digital assets have been under attack from politicians for years, but never like this. Senators @SenWarren and @SenSherrodBrown are trying to kill the entire industry, and their efforts are moving forward. pic.twitter.com/n7jJEAIjKI

— Chamber of Digital Commerce (@DigitalChamber) February 20, 2024

“This bill, if passed, will erase hundreds of billions of dollars in value for U.S. start-ups and decimate the savings of countless Americans invested in this asset class legally,” Boring added. “[It] 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 CDC is not alone in cautioning that the DAAMLA could jeopardize US national security by driving elements of the crypto industries offshore. On February 13, the Blockchain Association addressed a letter to Senator Brown and other US senators, stating that digital assets constituted a “strategic advantage” for the US.

[I]magine an ink manufacturer tasked with tracking every individual who ever handles a single dollar bill printed with their ink, across the entire globe. Such an absurd expectation underscores the impracticalities of the proposed legislation.

CDC founder and CEO Perianne Boring

Senator Warren sponsored the DAAMLA in the United States Senate in July 2023, just three months before Hamas launched an attack on Israel, shining a stronger light on terrorist financing. The Act clearly prohibits the use of cryptocurrency assets for money laundering and terrorist financing.

Elizabeth Warren’s war on crypto earns her a well-established enemy

John Deaton, an attorney who has pushed for the crypto industry, has officially begun his campaign for a United States Senate seat in Massachusetts without mentioning digital assets as a campaign issue.

In a video posted to his X account on February 20, Deaton stated that his campaign would be centered on “taking on the Washington elites,” arguing that Senator Elizabeth Warren “gets nothing done” for Massachusetts.

The video contained a photo of a Rhode Island Lawyers Weekly headline citing Deaton’s involvement in arguing for crypto against the United States Securities and Exchange Commission (SEC), as well as the lawyer wearing an XRP. Otherwise, the opening video addressed domestic issues such as inflation and border security.

First, it was schoolyard bullies, then it was greedy corporations and the SEC, and now I am taking on the Washington elites. https://t.co/XxW0M7kkw9 pic.twitter.com/adJVbz4tyn

— John E Deaton (@JohnEDeaton1) February 20, 2024

If successful, Deaton’s campaign could unseat incumbent Senator Warren, who has been in office since 2013. The Massachusetts senator has been one of the most outspoken critics of digital assets in the US government, arguing that the technology is mostly used for illegal purposes, including supporting terrorist organizations.

Many consider Deaton a long shot to unseat Senator Warren, who was seen positively by 41% of Massachusetts residents in a MassINC Polling Group poll conducted in 2023. The candidates’ election day will be November 5.