Elizabeth Warren criticizes crypto industry for extensive recruitment of former national security officials

Senator Elizabeth Warren has strongly criticized the Blockchain Association’s strategy of leveraging ex-military and national security professionals to influence U.S. cryptocurrency policies. This controversy arises from the Association’s recent Congressional correspondence, co-signed by numerous former defense and intelligence officers, to address misconceptions about crypto’s role in illicit finance.

The letter

In a letter to the Blockchain Association, Sen. Warren expressed concern over the crypto industry’s use of former defense, national security, and law enforcement officials. Citing reports, the Senator pointed to the industry’s strategy of employing these individuals to counter bipartisan efforts in Congress and the Biden Administration aimed at addressing cryptocurrency’s role in financing terrorist organizations such as Hamas.

The Senator’s letter references a recent report by Politico, highlighting the industry’s growing reliance on former government officials to navigate regulatory landscapes and influence federal policy. This approach is seen as a means to delay or deny new rules that would limit the use of cryptocurrencies by terrorists and criminals.

Senator Warren’s letter also raises ethical concerns about the ‘revolving door’ practice in Washington, where former officials or politicians transition to high-paying private sector roles after leaving government. She called for transparency from the crypto firms regarding their use of these practices and asked the Blockchain Association to provide detailed information about the employment of former government officials.

Response to the Senator

Kristin Smith, Chief Executive Officer of the Blockchain Association, responded to Senator Warren’s criticism via a series of tweets on Dec. 19.

Smith asserted that the Senator’s letter questions the involvement of former military and law enforcement personnel in the crypto industry. She argued that the industry shares a common American goal of fighting terrorism and protecting national security.

Smith emphasized the industry’s willingness to engage in policy discussions and expressed disappointment in Senator Warren’s approach, accusing her of attempting to discredit the industry and those working towards a more inclusive financial system.

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