3 - 5 minute read
In 2022, Massachusetts Senator Elizabeth Warren introduced a bill that would require cryptocurrency wallet providers to comply with bank Anti-Money Laundering rules. While this bill may seem like a positive step towards regulating the crypto market, it has far-reaching consequences that could destroy the industry. The bill seeks to regulate any computer programmer entrepreneur who writes code to help customers control crypto investments from their phone, essentially forcing them to register with the Treasury Department as if they were Western Union. This move could spell the end for many crypto startups.
Kansas Senator Roger Marshall joined Warren as a co-sponsor of the bill, but he seems to have betrayed the populist principles he ran on as a candidate. The bill also betrays the civil liberties and privacy tenets of progressivism that Warren espouses. The legislation seeks to outright ban crypto privacy tools, which could expose all crypto users to surveillance by the Taliban, Russia, and North Korean hackers alike.
The Warren/Marshall crypto bill to end privacy would harm national security. Women in Afghanistan living under Taliban rule use these crypto tools to provide for their families in secret. Additionally, the proposed bill would force crypto wallet providers to adopt regulations similar to those imposed on traditional banks, which were used by Canadian authorities against truckers protesting vaccine mandates.
Last year, Senator Warren introduced a bill that would adopt's China's approach, by imposing a de facto ban on public blockchains hidden under the guise of AML compliance.— Jake Chervinsky (@jchervinsky) February 17, 2023
Reports say the bill will be reintroduced again soon.
Let's not take our cues on crypto from the CCP.
It’s ironic that Marshall, who promised to fight against censorship and cancel culture, is now supporting a tool that has already been used against those who tried to donate Bitcoin to support Canadian trucker protesters. Ultimately, Marshall’s decision to co-sponsor this bill betrays the populist and pro-Trump principles that he ran on as a candidate.
The Warren bill is a Trojan horse designed to destroy the crypto markets under the false guise of a pro-national security bill. It’s a smart strategy to convince national security conservatives that this is an answer to a perceived problem, particularly members with little background knowledge as to how crypto works, and then let crypto development die off.
Crypto users and investors need to be aware of the potential impact of this bill on the market. If passed, it could spell the end of many crypto startups and hinder the growth of the industry. While the bill seeks to regulate the market and prevent money laundering, it does so at the cost of individual privacy and could expose crypto users to surveillance by authoritarian regimes.
The Bottom Line
The Warren/Marshall crypto bill to end privacy would have far-reaching consequences that could harm national security, expose crypto users to surveillance, and hinder the growth of the industry. Crypto users and investors need to be aware of the potential impact of this bill and take necessary precautions to protect their investments.