Two U.S. senators, Roger Marshall and Elizabeth Warren, have revealed that they received help from the American Bankers Association (ABA), the largest lobbying group for the U.S. banking industry, in drafting a bill that would ban crypto technology from being used for money laundering.
The bill, the Digital Asset Anti-Money Laundering Act (DAMA), was first introduced in December 2022 and aims to bring crypto technology, such as noncustodial wallets, validators, and mining pools, under strict banking regulations in the United States.
In a video posted on X (formerly Twitter) on Dec. 20, Marshall admitted that he and Warren consulted with the ABA, the largest lobbying organization for the U.S. banking industry, for assistance in crafting the bill.
The first thing that we did is that we went to the American Bankers Association and said ‘help us craft this.’ Marshall said in the video.
The video also showed Warren’s meeting with JPMorgan CEO Jamie Dimon, who agreed that “crypto was only a tool for criminals.” Dimon has been one of the most vocal critics of digital currency regulation, arguing that it would stifle innovation and harm consumers.
The ABA has not officially commented on its role in drafting or supporting the bill, but it has been vocal about its opposition to crypto regulation in general. The ABA has argued that regulation of digital assets would create uncertainty, complexity, and compliance costs for banks and their customers.
Growing Support For Warren’s Anti-Crypto Bill
The bill has gained some support from other senators and groups in Congress. On Dec. 11, it added three new co-sponsors, including three members of the Banking Committee. Moreover, the U.S. banking advocacy group, the Bank Policy Institute (BPI), has also backed the anti-crypto legislation introduced by Warren.
The BPI said it supports “a comprehensive approach to addressing illicit activity involving digital assets.” However, not everyone is convinced by Warren’s arguments against crypto regulation. Some experts have challenged her claims about crypto being used for nefarious purposes or posing systemic risks.
Despite a wealth of evidence to the contrary, anti-crypto commentators often claim that digital assets are mainly used for legitimate activities such as remittances, payments, and investments. Anti-crypto advocates also often fail to acknowledge the level of criminal activity in traditional finance, with JPMorgan being one of the most heavily fined banks for various violations since 2000.
Related Reading | DeFi Leaders Pullix, Polkadot, And Chainlink Drive Market Surge Amidst Shift From Meme Coins