Senator Warren Demands Crypto Lobbying Transparency Amid Terrorism Financing Concerns
Summary:
U.S. Senator Elizabeth Warren has urged crypto advocacy groups to provide transparency regarding their engagement with former governmental officials and lawmakers, implying their influence in dodging regulatory protocols for digital currencies. She asked these groups for details on the number of ex-government officials involved in the industry and their compensation. Senator Warren's stance came in the wake of allegations stating cryptocurrencies' potential usage in financing terrorist activities. Despite her criticisms, some leaders within the crypto industry defended their operations, stating their compliance with U.S. law enforcement and criticising Warren's call for various forms of transparency.
Senator Elizabeth Warren of Massachusetts, a vocal critic of digital currencies in the U.S. Congress, has requested cryptocurrency advocacy groups to clarify their engagement with former government officials and legislators. On December 18, Senator Warren wrote to leaders of Coin Center and the Blockchain Association, referencing a Politico article that stated that certain crypto companies have mobilized a "small army" of ex-defense, national security, and law enforcement personnel to resist the regulatory protocols of digital currencies. Reinforcing assertions that virtual investments have been used to back terrorist groups, for instance, Hamas which carried out an attack on Israel on October 7.
Senator Warren voiced her concerns over the apparent easy transition between Washington D.C circles and the crypto industry, implying that many public servants may be setting up their future careers in cryptocurrency lobbying while in government service. She gave the example of Coinbase's Global Advisory Council which initially included ex-Senator Patrick Toomey, ex-Representative Tim Ryan, and former Rep. Sean Patrick Maloney.
Criticizing this misuse of power, Senator Warren stated that the cryptocurrency sector spends millions to portray itself as legitimate while staunchly resisting sensible regulations meant to curb the utilization of crypto for terror financing, which could potentially affect their profits. To this end, the Massachusetts Representative requested these advocacy groups provide specifics by January 14 regarding the number of "former military, civilian government officials, or members of Congress" involved in the industry and their remuneration, in addition to any established ethical codes to manage potential conflicts of interest.
Responding to the letter, the Blockchain Association CEO, Kristin Smith, suggested that Senator Warren should aim her efforts at the guilty parties, rather than those cooperating with U.S. enforcement agencies to apprehend the offenders. Coin Center CEO, Jerry Brito also responded, labeling the letter as “disrespectful” and an attempt for publicity, while highlighting the imbalance of calling for public transparency at the expense of nonprofits' privacy from government interference.
Ever since the Hamas attack on Israel on October 7, believed to be funded by crypto and later corrected, Senator Warren has been more active in her efforts in Congress to rally support for her Digital Asset Anti-Money Laundering Bill. The proposed legislation, despite gaining some support, has been criticized by advocacy groups who argue it fails to address the illegal utilization of digital assets effectively.
Published At
12/19/2023 10:12:25 PM
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