- Sen. Elizabeth Warren sent letters to major crypto organizations accusing them of improperly influencing government policy by hiring former officials. She claimed this is an attempt to undermine efforts to restrict crypto’s role in terror financing.
- Warren has warned about crypto financing terrorism after a report said Hamas used crypto ahead of attacks on Israel. But the blockchain firm behind the data said the figures were misrepresented.
- Warren asked the crypto groups how many ex-government officials they employ and their duties. This comes amid broader scrutiny of the crypto industry’s lobbying efforts, which have increased in recent years.
Sen. Elizabeth Warren has sent letters to major crypto organizations accusing them of improperly influencing government policy by hiring former officials. This comes amid broader scrutiny of the crypto industry’s lobbying efforts in Washington.
Warren Accuses Crypto Groups of Undermining Congress
In a letter to the Coin Center advocacy group, Warren said crypto companies are “flexing a not-so secret weapon” by hiring former defense and law enforcement officials. She claimed this is an attempt to undermine Congressional efforts to restrict crypto’s role in terror financing.
Warren called this an “abuse of the revolving door” and said it shows crypto groups want to give themselves legitimacy while fighting regulations that could hurt profits. She sent similar letters to the Blockchain Association and Coinbase.
Crypto Used to Fund Terrorism?
Warren has warned about crypto financing terrorism after the Hamas attack on Israel in October. She and others cited a Wall Street Journal report saying Hamas used crypto ahead of the attacks.
But blockchain firm Elliptic, which provided data for that report, said the figures were misrepresented. Coin Center’s director called Warren’s latest assertion a “bullying publicity stunt.”
Crypto Lobbying Efforts in Washington
Public Citizen said last year that crypto lobbying spending has nearly quadrupled since 2018. This lobbying often involves former government officials.
Warren asked the groups how many ex-military and ex-Congress members they employ and their duties. She also asked if they restrict contacts between current officials and former ones now working in crypto.
Warren Pumping Up More Warnings
Warren has ramped up warnings about the crypto industry’s influence amid broader scrutiny of its lobbying. However, the industry is pushing back on claims it enables terrorism financing. The back-and-forth shows tensions persisting as lawmakers eye more crypto regulation.
