Senator Elizabeth Warren of Massachusetts is worried about possible ties between the crypto business and former government officials. She has asked crypto advocacy groups to explain how they work with former lawmakers.
In letters sent on December 18 to the leaders of Coin Center and Blockchain Association, Senator Warren talked about a Politico report that said the crypto industry has a “small army” of former defense, national security, and law enforcement officials who are working to stop regulations on digital assets.
The senator said again that she doesn’t think crypto should be used to fund terrorist groups. She specifically mentioned reports that crypto was used to fund Hamas, the group that attacked Israel on October 7. Senator Warren brought up the revolving door issue and said that it could mean that government workers are using their time in public service as a stepping stone to get political jobs in the digital asset sector. She used Coinbase’s Global Advisory Council as an example. At first, it had former Senator Patrick Toomey, former Representative Tim Ryan, and former Representative Sean Patrick Maloney on it.
Senator Warren was upset about what she saw as an abuse of the revolving door. She said that the crypto industry was spending a lot of money to make it look like it was legitimate while strongly opposing reasonable rules that would stop people from using crypto to fund terrorism.
Senator Warren has asked advocacy groups to give her information by January 14 on how many former military members, civilian government workers, or members of Congress are working in the crypto business and how much they are paid. In addition, she wanted to know if there was a code of ethics that dealt with possible conflicts of interest.
When asked about Senator Warren’s letters, Coin Center CEO Jerry Brito called them “impertinent” and a “bullying publicity stunt.” Brito said that the senator’s call for openness meant that the government should be able to look into groups without any privacy.
“Sen. Warren should focus her efforts on the perpetrators, not those working hand-in-hand with U.S. law enforcement to catch bad actors,” said Blockchain Association CEO Kristin Smith in response to the letter.
Since the October 7 attack by Hamas on Israel and reports linking crypto to terrorist financing, Senator Warren appears to have intensified her efforts in Congress to garner support for the Digital Asset Anti-Money Laundering Act.
Despite receiving backing from several lawmakers, this legislation has faced criticism from advocacy groups, asserting that it falls short in effectively addressing the illicit use
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