Massachusetts Senator Elizabeth Warren has directed her attention towards crypto advocacy groups, demanding answers about their engagement with former government officials. Warren’s concern stems from a recent Politico report revealing that certain factions within the industry employ a “small army of former defense, national security, and law enforcement officials” to resist regulatory efforts.
Warren Urges Crypto Firms To Disclose Ties With Former Officials
In letters dated December 18, Senator Warren addressed the leaders of prominent advocacy groups, Coin Center and the Blockchain Association. The letters reference the alleged utilization of former officials to impede regulations on digital assets. The Senator highlights a Politico report stating that the crypto industry’s strategy involves deploying these officials to undermine bipartisan initiatives addressing cryptocurrency’s role in funding terrorist organizations, including Hamas.
The letters express particular concern about crypto’s association with recent terrorist activities, notably the October 7 attack by Hamas terrorists in Israel. The CEO of major crypto exchange Binance’s guilty plea further reinforces worries, citing failures in preventing transactions linked to terrorist organizations, ransomware attackers, money launderers, and criminals.
Senator Warren points out that the crypto industry seems focused on obstructing and denying new rules instead of cooperating with legislative efforts to address these issues. The industry’s reported engagement of former defense, national security, and law enforcement officials is seen as a deliberate strategy to influence policymakers.
The revolving door between government service and the industry is also under scrutiny, with examples like Coinbase’s Global Advisory Council, which initially included former members of Congress. Senator Warren emphasizes the need for transparency and accountability, demanding answers to specific questions about the employment, roles, and compensation of former military, government officials, and members of Congress associated with these advocacy groups.
Warren contends that the reported revolving door practices expose significant gaps in the nation’s ethics laws, allowing former officials to exploit their connections for personal gain. She urges Congress and the public to be informed about the extent of these practices in the crypto industry and calls for detailed responses from advocacy groups by January 14, 2024. The Senator asserts that such practices undermine public trust and hinder efforts to establish sensible regulations on cryptocurrency use.
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