Elizabeth Warren's Anti-Crypto Stance Faces Backlash as Crypto Gains Political Ground
Summary:
Elizabeth Warren's Anti-Money Laundering bill continues to face backlash from the blockchain industry that believes it could obstruct its growth. A letter supported by 80 signatories indicated that the bill threatens U.S. jobs and strategic advantage. Despite broad support for more conducive blockchain regulation, Warren continues her anti-crypto stance. Furthermore, the potential challenge posed by attorney and crypto advocate John Deaton for the Senate in Warren's state suggests an emerging political influence of the crypto industry.
Elizabeth Warren, the US Senator notorious for her strong opposition to the blockchain industry, continues to face backlash for her incessant campaign against digital currencies. In February, national security professionals aligned with the Blockchain Association expressed apprehension regarding Warren's proposed crypto legislation. Warren's Anti-Money Laundering bill has stakeholders concerned, arguing it may obstruct the growth of blockchain in the US.
In a letter titled “Enacting Proposed Legislation that Threatens Digital Asset Development,” 80 signatories voiced their concerns, stating the bill "jeopardizes our nation's competitive edge, puts thousands of American jobs at risk, and has little impact on the criminal activities it is aimed at.”
To understand the repercussions post their February intervention, Cointelegraph reached out to Kristen Smith, CEO of the Blockchain Association. "The letter addressed to Congress on February 13, which was backed by former military and national security experts, received broad support from industry leaders and influential Congress allies," said Smith. She added, "It’s evident that there is a universal agreement on the importance of enacting effective policies to uphold America’s leadership in emerging technology. The industry continues to push for smart regulation, striving to create a conducive environment that spurs innovation and furthers our nation’s strategic goals.”
Still, Warren persists with her anti-crypto stance. In a recent interview with Bloomberg, she expressed her desire to engage with the crypto industry while simultaneously berating it. Warren also linked crypto to illegal entities like traffickers and scammers, and suggested its connection to North Korea's nuclear missile program, garnering negative attention from the blockchain community.
Danny Lim, a key contributor at the decentralized exchange MarginX, labeled Warren's bill as wasteful. Suggesting a more tailored approach, Lim asserted that traditional banking rules cannot be directly imposed onto crypto transactions. Zac Cheah, co-founder and CEO of Pundi X, concurred with Lim, emphasizing the need for regulations that promote innovation and shield the financial system from illicit activities.
Warren’s criticism of blockchain until recently remained relatively inconsequential. However, on February 20, lawyer and XRP advocate John Deaton declared his intent to run for the Senate in Warren's home state of Massachusetts. This signals an imminent threat to Warren’s authority from within the crypto realm. Leading personalities in the crypto world, including Cardano founder Charles Hoskinson, are already supporting Deaton's campaign.
John Deaton, a lawyer recognized for supporting XRP users and protecting their interests against the US Securities and Exchange Commission (SEC), seems an improbable political figure. A recent Boston.com poll suggests that Deaton might pose a substantial challenge to Warren, with 57% of over 500 respondents believing so.
Deaton's candidacy also signifies the growing political influence of crypto. As pointed out by the Blockchain Association’s Smith, “We are thrilled to see an escalating number of pro-crypto candidates joining the electoral races at various government levels.” This offers a point to ponder for anyone advocating an anti-crypto stance.
Published At
3/14/2024 4:35:00 PM
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