The Blockchain Association, a nonprofit representing the U.S. crypto industry, penned a letter to Congress raising concerns about Senator Elizabeth Warren’s Digital Asset Anti Money Laundering Act of 2023.

The letter, endorsed by 80 former military and national security professionals with digital asset expertise, argues that the bill jeopardizes America’s competitive edge, endangers thousands of jobs, and lacks effectiveness against illicit actors.

Senator Warren’s bill seeks to broaden Know-Your-Customer and anti-money laundering obligations to include digital asset service providers, miners, validators, and other participants to address security vulnerabilities in crypto transactions, particularly those involving unhosted wallets or offshore accounts. 

One provision of the bill proposes that the Treasury, SEC, and Commodity Futures Trading Commission establish a new review process to enforce Bank Secrecy Act compliance on digital asset entities.

The Blockchain Association expressed concern that Senator Warren’s DAAMLA legislation could unintentionally hold back law enforcement and national security efforts by causing much of the digital asset industry to relocate overseas.

They warned that stricter compliance measures might lead to increased trading on unregulated foreign exchanges and a drain of blockchain expertise from the United States. 

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