Elizabeth Warren’s crypto bill draws criticism and sparks an election challenge
US Senator Elizabeth Warren, known in the blockchain industry in bad crypto circles, continues to come under fire for her ongoing campaign against digital assets.
In February, a coalition of military and national security experts partnered with the Blockchain Association to raise concerns about Warren's proposed crypto legislation.
Industry figures are troubled, believing that the senator's anti-money laundering legislation, if passed, could hamper the pace of blockchain growth in the US.
In a letter titled “Legalizing Digital Asset Development at Risk,” 80 signatories opined that Warren's bill “threatens our nation's strategic interests, threatens tens of thousands of American jobs, and does little to target illegal actors.”
Cointelegraph spoke to Blockchain Association CEO Christine Smith to find out what happened after the February intervention.
“Our February 13 letter to Congress was signed by former military and national security experts and received strong support from both industry leaders and key allies in Congress,” Smith said.
“It is clear that there is broad consensus on the importance of implementing effective policies to maintain America's leadership in technology. The industry is committed to supporting responsible regulation by planning to foster an environment that fosters innovation and advances our nation's strategic objectives.”
Undeterred, Warren continues to advocate for anti-crypto policies. In the year In a February 27 Bloomberg interview, the senator said she wants to work alongside the industry while painting.
“I want to collaborate with the industry,” she said. “What I don't understand is that the only way the industry can survive is if there's a lot of room for drug dealers and smugglers — oh, and the terrorist, and the ransomware scammer, and the consumer scammer.
Warren continued to raise the specter of nuclear weapons and rogue nations.
“North Korea is financing half of its nuclear missile program with crypto,” she said.
The crypto industry is not impressed.
Warren's penchant for stacking the crypto industry with the lowest echelons of society has won her few friends in the blockchain space.
Danny Lim, chief contributor to decentralized exchange MarginX, is a prime example of Warren's account of wasted effort.
“Elizabeth Warren's crypto bill involves a legislative effort that takes 1,000% of the effort to achieve a 1% result,” says Lim.
Latest: Moon or Doom: Why Do So Many Crypto Startups Fail?
According to Lim, Warren's key mistake is believing that regulations intended for the traditional financial world can be lifted and applied to crypto wholesale. As Lim explained, “Applying traditional banking methods for monitoring and tracking may not be effective.
Instead, we need to explore more crypto-centric solutions for meaningful integration of TradFi and DeFi. [decentralized finance]. Implementation of general travel rules and mandatory KYC [Know Your Customer] Off-chain transactions are not good for crypto users and the industry as a whole,” Lim said.
Zac Cheah, founder and CEO of blockchain-based PundiX, echoes Lim's assessment.
“Applying traditional banking regulations to digital assets without adjustments can stifle innovation. In order to sustain the growth of the crypto industry, it is crucial to enact regulations that effectively address money laundering and be flexible to accommodate the unique characteristics of digital assets, Cheh told Cointelegraph.
“We need a regulatory system that encourages innovation while protecting the financial system from illegal activities,” he concluded.
A new threat to Warren
Until recently, Warren's attack on the blockchain had few real results.
That may be set to change. In the year With Dayton running for the Senate seat, Warren now faces a direct threat to power from within the crypto industry.
Prominent members of the cryptocurrency community, such as Cardano founder Charles Hoskinson, contributed to the campaign.
I donated the maximum amount allowed to @DeatonforSenate in his fight for Senate against Elizabeth Warren. We need people willing to stand up against the banks writing our laws and destroying the Crypto industry. pic.twitter.com/tTxmghBhUH
— Charles Hoskinson (@IOHK_Charles) March 3, 2024
As for Dayton, he cuts an unlikely political figure. The attorney is known in the crypto community for advocating for XRP holders on behalf of their interests at the US Securities and Exchange Commission (SEC).
Originally from Detroit, Michigan, Deaton practiced law in New England. His connection to the Bay State dates back to his time studying law in Boston.
Deaton now rents property in Massachusetts and has put his Rhode Island home up for sale. Deaton couldn't even unseat Warren, giving the incumbent a headache.
The campaign's website says: “John Deaton is a US Marine veteran, cancer survivor, father of three daughters, trial attorney, author and man who overcame impossible odds to build a life for his family and champion other underdogs.
A February poll of Boston.com readers suggested Warren may have a challenge on her hands. Among more than 500 respondents, 57% said Warren was susceptible to Dayton, while 39% said she was too entrenched.
Latest: Will Bitcoin Halve Bring More Institutional Investors To Crypto?
Dayton's campaign for the Senate seat is another chapter in the rise of crypto as a political force.
The Blockchain Association's Smith told Cointelegraph, “We are excited to see more and more pro-crypto candidates entering the election race at various levels of government.
This is food for anyone who stands on the anti-crypto platform.
