Senator Warren accuses crypto industry of undermining national security

Senator Elizabeth Warren raises alarms over the crypto industry's influence on national affairs.

Senator Warren accuses crypto industry of undermining national security

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Senator Elizabeth Warren expressed new concerns about the crypto industry, citing the hiring of many former defense and law enforcement officials as lobbyists in a recent statement on her X account.

“Crypto companies are spending millions building an army of former defense and law enforcement officials to lobby against new rules shutting down crypto-financed terrorism. This revolving door boosts the crypto industry but endangers our national security.”

Warren sent letters to US crypto advocates, including the Blockchain Association. Its CEO, Kristin Smith, commented on the letter received:

“As Americans, we all share the common goal of fighting terrorism and protecting our national security. Sen. Warren should focus her efforts on the perpetrators, not those working hand-in-hand with U.S. law enforcement to catch bad actors.”

The Senator has expressed concerns about the Blockchain Association and its attempts to recruit potential employees still working in public service for jobs after they leave government:

“It also reveals significant gaps in the nation’s ethics laws. These gaps allow former government officials – including former national security officials – to leave their positions in the public trust and almost immediately cash in and work as lobbyists or advisers for private-sector industries with a keen interest in federal policy.”

It is worth noting that the Fairshake Political Action Committee (PAC), a non-profit organization advocating for social and economic justice, has raised over $78 million through fundraising efforts. These donations have been made possible by contributions from leading venture firms, exchanges, and industry leaders in the crypto industry, including Andreessen Horowitz, Ark Invest, Coinbase, Circle, and Ripple, among many others.

Senator Warren has recently proposed a bill in the US to tighten crypto regulations. The bill, known as the Digital Asset Anti-Money Laundering Act, aims to combat the potential use of cryptocurrencies in money laundering and other illegal activities. If passed, it would extend existing anti-money laundering (AML) laws and know-your-customer (KYC) regulations to various entities in the digital asset space.

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