July 19, 2023 – The Chamber of Digital Commerce opposes S.2355, the Crypto-Asset National Security Enhancement Act.
The Chamber views it as an excessive and misguided approach to addressing security issues related to decentralized finance (DeFi) and Crypto Kiosks.
Traditional financial systems have long been exploited for money laundering activities at a scale much larger than the nascent crypto sector. Therefore, while the digital asset industry welcomes strong, effective AML laws, it is crucial that these laws are proportionate and do not unfairly penalize the industry or inhibit innovation.
“The Crypto-Asset National Security Enhancement Act of 2023 is a bad bill. As is, this bill is unworkable,” said Cody Carbone, Vice President of Policy at The Chamber. “We at The Chamber are committed to work with each individual bill sponsor to educate them so they can produce commonsense legal frameworks that protect consumers, U.S. national security, and deter bad actors without stifling innovation or infringing on privacy rights.”
The Chamber maintains that the bill is technically unfeasible, excessively burdensome, and could potentially stifle the burgeoning digital asset industry in the U.S., harming not only the innovators in the field but also consumers seeking to leverage these emerging financial tools.
A more balanced approach is to instead recognize and leverage the inherent transparency and programmability of blockchain systems, and work alongside industry experts to formulate a technologically sound, practical approach that supports both national security and the growth of the DeFi sector.
**Chamber experts are available for comment.
Contact firstname.lastname@example.org to schedule an interview.**