Sen. Warren calls out crypto industry’s revolving door of Washington insiders

Massachusetts Senator Elizabeth Warren, an outspoken opponent of digital assets in the United States Congress, has called on crypto advocacy groups to answer questions regarding the industry’s use of former government officials and lawmakers.

In Dec. 18 letters to leadership at advocacy groups Coin Center and the Blockchain Association, Senator Warren cited a Politico report that certain entities within the crypto industry had a “small army of former defense, national security and law enforcement officials” aimed at stymieing regulation of digital assets. She reiterated claims that crypto was behind the financing of U.S.-designated terrorist organizations, including Hamas — the group behind the Oct. 7 attack on Israel.

According to Senator Warren, the revolving door between the crypto industry and Washington, DC insiders suggested that many government officials could be laying the groundwork while in public service to “audition” for digital asset lobbying positions. She referenced crypto exchange Coinbase’s Global Advisory Council, which initially included former Senator Patrick Toomey, former Representative Tim Ryan and former Representative Sean Patrick Maloney.

“This abuse of the revolving door is appalling, revealing that the crypto industry is spending millions to give itself a veneer of legitimacy while fighting tooth and nail to stonewall common sense rules designed to restrict the use of crypto for terror financing – rules that could cut into crypto company profits,” said Senator Warren.

The Massachusetts lawmaker requested the advocacy groups provide information by Jan. 14 on the number of “former military, civilian government officials, or members of Congress” employed in the industry and their compensation. She also asked the organizations for details about any code of ethics in place to address such potential conflicts of interest.

“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.

1/ Tonight, I received a letter from Sen. Warren criticizing a recent letter to Congress cosigned by dozens of former US military, intelligence officers, and national security professionals.

Here’s the letter from Nov. 15: https://t.co/IFBH7m5ywU

— Kristin Smith (@KMSmithDC) December 19, 2023

Related: Terrorist fundraising: Is crypto really to blame?

Coin Center CEO Jerry Brito referred to the letter on X — formerly Twitter — as “impertinent” and a “bullying publicity stunt,” adding:

“[Senator Warren] says the public ‘deserves transparency’ but the implication of that view is that nonprofits deserve no privacy from government intrusion.”

Since the Oct. 7 attack by Hamas on Israel and reports suggesting crypto funded the group — of which at least one story was later corrected — Senator Warren seems to have stepped up her efforts in Congress to drum up support for her Digital Asset Anti-Money Laundering Act. Though supported by many lawmakers, the legislation has received criticism from advocacy groups, which claim it would fail to address the illicit use of digital assets.

Magazine: Terrorism and Israel-Gaza war weaponized to destroy crypto

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