The Blockchain Association has sent a letter to Congress signed by over 80 former military and national security professionals raising concerns over new crypto bills under consideration.

The letter warns that certain legislative proposals risk severely hampering digital asset innovation in the United States.

• Bills like the CANSEE Act and DAAMLA could stifle progress in the crypto sector per letter signatories.
• Security experts argue against overregulation that would curb US competitiveness.
• The group plans to visit Capitol Hill to advocate against the detrimental impact of legislation.

Read more: Ripple Expands US Presence With Purchase Of NY Crypto Trust Firm

Specifically, the coalition focuses on the Crypto-Asset National Security Enhancement and Enforcement (CANSEE) Act and the Digital Asset and Anti-Money Laundering Act (DAAMLA).

In their view, these bills propose overly restrictive measures that would “cripple” growth and innovation in the crypto asset industry.

While acknowledging the importance of combating illicit finance, the signatories caution against policy overreactions driven by “misinformation and misunderstanding.”

They argue that the unintended consequences of blunt policy tools could undermine national security and technological leadership.

Blockchain Association says proposed legislation could stifle crypto innovation

“It is imperative that policymakers consider the collective expertise of the signatories and recognize the invaluable role digital assets play in driving economic growth, fostering technological advancement, and protecting our nation’s security,” said Kristin Smith, CEO of the Blockchain Association industry group.

The 80+ signatories include a range of former government, military, and intelligence officials with experience fighting financial crimes, terrorism, and cyber threats. 

Read more: Ledger Partners With Coinbase To Streamline Crypto Purchases

In a press release, the Blockchain Association said the proposed legislation would not only stifle crypto innovation but also effectively impose a ban on digital asset development. 

Additionally, the group plans to bring its message directly to lawmakers during Capitol Hill visits on Thursday, March 14. They hope constructive dialogue with legislators and staff will lead to more thoughtful policymaking.