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Cryptocurrency industry lobbying
U.S. Senator Elizabeth Warren wrote in a letter to key crypto-assets (virtual currency) industry groups on Wednesday that lobbying of the U.S. Congress by the industry is undermining efforts to address the use of cryptocurrencies in the financing of terrorism. They criticized him for letting him do so.
Senator Warren sent the letter to three organizations: Coinbase, the largest U.S. exchange, the Blockchain Association, a major industry group, and Coin Center, a virtual currency think tank. The letter cited a report in Politico that said these groups employ and use former government officials to lobby in Washington.
I am committed to your association and other crypto stakeholders to undermine bipartisan efforts in Congress and the Biden administration to address the role of cryptocurrencies in funding Hamas and other terrorist organizations. It writes about alarming new reports that it is using a “not-so-secret weapon: a small army of former defense, national security, and law enforcement officials.”
Virtual currencies and terrorist financing
Warren claims that since Hamas’ attack on Israel on October 7, it has become clear that cryptocurrencies have become “an integral part of[Hamas’]operations.”
Binance, a major exchange, was found guilty of failing to implement anti-terrorist financing measures. “It made it possible for it to flow.”
To address these concerns, there is growing support in the U.S. Congress for the Digital Asset Money Laundering Prevention Act, while the crypto industry’s response is to create new measures to restrict the use of cryptocurrencies by terrorists and criminals. “The focus seems to be on postponing and denying the rules,” Warren said.
Cryptocurrency industry opposes
Cryptocurrency companies are refuting the theory that cryptocurrencies were used to support Hamas.
Blockchain data analysis company Elliptic released a statement clarifying the facts from the data, stating that there is “no evidence of this.” Chainalysis also said in a report tracking the flow of funds that mainstream media reporting had led to incorrect conclusions.
connection:“There is no evidence of large cryptocurrency donations to Hamas” – data analysis company Elliptic
Most recently, Circle, Inc., which provides the US dollar stablecoin USDC, submitted an open letter to members of Congress denying any possibility that it was involved in Hamas funding.
connection:Circle Inc., issuer of virtual currency USDC, says it has no involvement in terrorist financing, writes letter to lawmakers
The Blockchain Association signed a petition signed by crypto companies and 40 former military personnel and national security experts to “address and clarify misconceptions about the role of cryptocurrencies in relation to illicit finance and money laundering.” A letter was submitted to Congress.
“revolving door”
In her letter, Sen. Warren criticized the above-mentioned letter submitted by the Blockchain Association, saying it “downplays the illegal activities of virtual currencies and opposes the policy.”
He said the crypto industry spends millions of dollars on a “revolving door” of former officials, “gives itself a semblance of legitimacy” and engages in “common sense terrorism” that could hurt crypto companies’ profits. “We are fighting tooth and nail to stop anti-financing rules.”
Warren takes issue with the ability of government officials to leave their jobs “almost immediately” and get jobs as “lobbyists and advisors for private companies with a vested interest in national policy” with the promise of high pay. .
There is currently a bill in Congress that would close loopholes in lobbying laws and “limit revolving door abuse.”
Congress and the public need transparency about the extent to which crypto companies are exploiting the revolving door and fighting efforts to close holes in current anti-money laundering and terrorist financing laws. There is
Warren asked the three organizations that sent the letter to answer a series of questions about their use of the revolving door to hire government workers and the scope of their jobs, giving them a deadline of January 14 next year.
Industry reaction
Kristin Smith, director of the Blockchain Association, said the cryptocurrency industry shares “a common goal of fighting terrorism and protecting national security,” and that Warren’s actions “damage the industry and the individual’s credibility.” He said it was an “unfortunate step.”
1/ Tonight, I received a letter from Sen. Warren criticizing a recent letter to Congress cosigned by dozens of former US military, intelligence officers, and national security professionals.
Here’s the letter from Nov. 15: https://t.co/IFBH7m5ywU
— Kristin Smith (@KMSmithDC) December 19, 2023
Coin Center Executive Director Jerry Brito criticized Warren’s letter on X, calling it nothing more than a “bullying propaganda stunt,” and shared the following press release:
Engaging like-minded experts to oppose a bill that they genuinely believe is unconstitutional and detrimental to the welfare of the nation does not “undermine bipartisan efforts in Congress.” Rather, it is an exercise of the fundamental right to associate freely and to petition the government. It is everyone’s right and no one should apologize for doing it.
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