A group of 80 ex-U.S. military and government officials, also part of the Blockchain Association (BA), wrote a letter to Congress on Feb. 13th. They strongly opposed Senator Elizabeth Warren’s anti-money laundering bill for crypto—the Digital Asset Anti-Money Laundering Act (DAAMLA). The letter said the bill would hurt US security, hurt the American crypto industry, and not even impact the foreign criminals it targets.

The DAAMLA, which Senator Warren reintroduced last July, aims to stop crypto asset use for money laundering and terrorism payments. However, the Blockchain Association’s letter claimed the bill exaggerated crypto’s role in funding terrorism and illegal things. The letter also said the bill would make most crypto companies move overseas. That would mean the US loses leadership, skill, and visibility in crypto.

Blockchain Association wrote this letter after Senator Warren accused the crypto industry of hiring a bunch of ex-defense, national security, and law enforcement folks to fight against crypto rules. She sort of hinted that these people might not have the best intentions and might not be trustworthy.

The letter rejected Warren’s claim. It asked lawmakers to “recognize [their] outstanding military and public service records.” Signers included a Coinbase executive and ex-Army, Marines, Air Force, Navy, and Justice Department people. The letter gave examples of how crypto and blockchain could help US security, improving cybersecurity, supply chain management, and humanitarian aid.

Blockchain Association Urges Balance

The BA letter stressed that crypto and blockchain were “vital for America’s strategic edge.” It said the bill would threaten many US jobs and innovation. The letter also warned the bill would not impact foreign criminals. They would just move to unregulated offshore exchanges.

Blockchain Association’s letter also urged Congress to reject the DAAMLA. It asked for a balanced approach to crypto regulation instead. One that protects consumers, investors, and security while encouraging innovation and competitiveness. The letter also called for more talks between the government and the crypto industry. To address the challenges and opportunities of this new technology.

All this happened as tensions between the U.S. and some other countries were rising. These countries are using crypto to dodge sanctions and fund their operations. After Hamas attacked Israel on Oct. 7, many U.S. lawmakers wanted to hit groups connected to them, including by putting sanctions on their crypto wallets. Senator Warren’s office didn’t comment when asked about all this.

Related Reading | Shiba Inu (SHIB) Price Aims To Shed One Zero, Driven By Key Catalysts