A controversial bill banning the self-custody of Bitcoin has suffered a major setback. Republican senator Roger Marshall, an initial co-sponsorer has withdrawn support from the legislation, per records. The bill, reintroduced in the Senate last July by Senator Elizabeth Warren, with significant bipartisan support faced intense criticism from the crypto community. A letter-writing campaign spearheaded by Satoshi Action Fund is credited with playing a part in Marshall’s decision.
The US senator, who was one of the original architects of the legislation, has been known for his tough stance on Bitcoin and other crypto assets, even labeling them as a threat to national security in 2022. Last year, Marshall and Warren persuaded the American Bankers Association [ABA], the largest lobbying group for the U.S. banking industry, to draft a bill that would ban crypto technology from being used for money laundering.
“The first thing that we did was that we went to the American Bankers Association and said ‘Help us craft this,” Marshall said in the video posted on X [formerly Twitter] on Dec. 20.
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.
Marshall also raised the issue of the then jurisdictional tussle between the SEC and CFTC, suggesting that placing all digital assets under the CFTC’s purview might be simpler. Although the senator’s eventual withdrawal of support for the bill he originally stood for has raised eyebrows, Dennis Porter, CEO of Satoshi Action Fund, claimed that their letter-writing campaign launched on December 21st influenced Marshall’s decision.
Is Bitcoin a Partisan Issue? Heated Debate Erupts
Porter thanked the thousands of supporters for their impactful letters opposing the legislation. The move reflects a changing sentiment toward digital assets, especially in the political sphere.
VP Kamala Harris, who has emerged as the frontrunner to the US presidential post, was criticized for her decision not to speak at the Bitcoin Conference. The move has sparked mixed reactions in the crypto community, with some urging users to vote for Trump. However, a section of the community has called for maintaining a bipartisan approach to ensure a healthier ecosystem in the long run.
