Coinbase has denied Senator Warren’s government insider allegations

Cryptocurrency exchange Coinbase has denied allegations by Massachusetts Senator Elizabeth Warren that it hired former government officials to obstruct the development of digital asset regulations.

In a letter dated December 22, Coinbase Chief Policy Officer Faryar Shirzad refuted Sean Warren's claims, saying the exchange continues to responsibly and proactively support regulatory measures in the crypto industry.

“Your claim that Coinbase is trying to subvert cryptocurrency-related binary laws is simply false. Your allegation is not only baseless, but deliberately misrepresents our intentions and efforts.

Senator Warren's letter to @coinbase We're back on track to fight bipartisan legislation by hiring national security veterans.

In our response we said: We take great pride in rooting out illegal activities on our platform and our deep partnership…

— Faryar Shirzad ️ (@faryarshirzad) December 23, 2023

Shirzad also explained that the exchange's recruitment of government employees is part of a broader initiative aimed at protecting the security of crypto users in the United States.

“We are extremely proud of our team of national security professionals who dedicate themselves to protecting Americans every day,” the letter said.

Related: More US Senators Support Elizabeth Warren's AML Bill Targeting Crypto

Warren's letter suggests that many government officials may lay the groundwork for “audits” of digital asset lobbying positions while in public service. She pointed to Coinbase's Global Advisory Council as an example. The letter says:

“This backdoor abuse is appalling, showing that the crypto industry is spending millions fighting tooth and nail against a stone wall designed to limit the use of crypto for terrorist financing. To crypto company profits.”

This comes after recent news that Coinbase expanded its global advisory council with four national security experts.

In the year On November 7, Cointelegraph reported that the council is ready to take a more strategic approach by adding new members, all of whom previously held high positions in the government.

Mark Esper, former US Secretary of Defense, Stephanie Murphy, former member of Congress and national security expert, Frances Townsend, former US President George W. Bush Homeland Security Advisor, David Urban, Managing Director of BRG Group.

Magazine: Legislators' fear and skepticism fuel proposed crypto regulations in the US.