Elizabeth Warren, a United States Senator known for her strong opposition to the blockchain industry, continues to face criticism for her ongoing campaign against digital assets. In February, a group of military and national security professionals, in collaboration with the Blockchain Association, expressed concerns about Warren’s proposed crypto legislation. They believe that if passed, her Anti-Money Laundering bill could impede the development of blockchain technology in the United States. In a letter titled “Enacting Proposed Legislation that Threatens Digital Asset Development,” 80 signatories stated that Warren’s bill “risks our nation’s strategic advantage, threatens tens of thousands of U.S. jobs, and has little effect on the illicit actors it targets.”
Cointelegraph interviewed Kristen Smith, CEO of the Blockchain Association, to understand the developments since their intervention in February. Smith stated, “The letter we sent to Congress on Feb. 13, signed by former military and national security experts, has received strong support from industry leaders and key allies in Congress.”
Despite the backlash, Warren continues to advocate for anti-crypto policies. In a Bloomberg interview on February 27, she claimed that she wanted to collaborate with the industry while simultaneously criticizing it. Warren said, “I want to collaborate with the industry. What I don’t understand is why the industry seems to be saying that the only way they can survive is if there’s plenty of space for drug traffickers, human traffickers, terrorists, ransomware scammers, and consumer scammers.”
Warren’s tendency to associate the crypto industry with criminal activities has not been received well by the industry. Danny Lim, a core contributor at decentralized exchange MarginX, believes that Warren’s bill is a futile effort. Lim stated, “The Elizabeth Warren crypto bill embodies a legislative effort that expends 1,000% effort to achieve a 1% outcome.”
According to Lim, Warren’s key mistake is assuming that regulations designed for traditional finance can be applied to crypto without any adjustments. He argues that applying traditional banking methods for monitoring and tracing may prove ineffective. Lim suggests exploring crypto-centric solutions for a meaningful convergence of traditional finance and decentralized finance.
Zac Cheah, co-founder and CEO of Pundi X, a blockchain-based point-of-sale solution, agrees with Lim’s assessment. Cheah believes that applying traditional banking regulations to digital assets without adjustments could hinder innovation. He emphasizes the need for regulations that effectively tackle money laundering while being flexible enough to accommodate the unique characteristics of digital assets.
Warren now faces a new threat with lawyer and XRP advocate John Deaton announcing his intention to run for Senate in Massachusetts, where Warren holds power. Deaton’s campaign has gained support from prominent members of the cryptocurrency community, such as Cardano founder Charles Hoskinson. Deaton is known for representing the interests of XRP holders against the U.S. Securities and Exchange Commission (SEC). His campaign website describes him as a U.S. Marine veteran, cancer survivor, father, trial attorney, author, and champion for underdogs.
A poll conducted by Boston.com in February suggests that Warren may face a challenge from Deaton, with 57% of respondents stating that she is vulnerable. This marks another milestone in the growing influence of crypto in politics.
As Kristen Smith from the Blockchain Association notes, an increasing number of pro-crypto candidates are entering electoral races at various levels of government. This trend is significant for those who oppose crypto and its technology.