Blockchain Association Addresses Sen. Warren’s Criticism of Crypto Hires

Last updated: January 8, 2024 21:43 EST . 2 min read

Disclosure: Crypto is a high-risk asset class. This article is provided for informational purposes and does not constitute investment advice. By using this website, you agree to our terms and conditions. We may utilise affiliate links within our content, and receive commission.Source: PixabayThe Blockchain Association has published a public response to Senator Elizabeth Warren’s criticism of the crypto industry’s hiring of former government officials.

In an open letter published on January 9th, Blockchain Association CEO Kristin Smith addressed Sen. Warren’s previous comments, offering the Association’s “partnership” and stating that her organization would be receptive to engaging in discussions “in an open and transparent manner.”

Sen. Warren had previously sent letters to crypto advocacy groups – including Blockchain Association and Coin Center – on December 18th last year, arguing that crypto was behind the financing of terrorist organizations such as Hamas, and suggesting that many government officials were preparing to “audition” for digital asset lobbying positions while still holding office.

In her letter to Warren, Smith said the Blockchain Association was “fortunate and proud” to consider many former military, national security, intelligence officers, and law enforcement individuals among its membership.

“After leaving government, these public servants could have chosen from myriad, well-deserved professional opportunities. But they were drawn to work in the emerging digital asset industry because they value freedom and creativity,” Smith said.

“We believe crypto values are American values,” Smith continued. “Blockchain technology has demonstrated the potential to enhance financial inclusion […] and provide new wealth-building opportunities outside of Wall Street through direct ownership of assets. At its core, crypto technology reflects and enhances fundamental values integral to our country.”

Smith also asserted that the “enormous costs” of enforcing the Bank Secrecy Act would “far outweigh any benefits,” adding that her Association and its membership would “continue to exercise our Constitutional rights by petitioning the government and speaking freely on this issue.”

The Digital Asset Anti-Money Laundering Act

Warren, a vocal critic of the crypto industry, reintroduced the Digital Asset Anti-Money Laundering Act last year, which aims to extend Bank Secrecy Act requirements including know-your-customer rules to ious crypto companies, such as miners, validators, and wallet providers. The act would also prohibit the use of anonymity-enhancing technologies in crypto transactions.

Shortly after the publication of Warren’s letter in December, Coin Center CEO Jerry Brito posted his own response on X, calling the letter “impertinent” and a “bullying publicity stunt.”

“She says the public ‘deserves transparency’ but the implication of that view is that nonprofits deserve no privacy from government intrusion,” Brito said on X. “Surely she would see the problem in this if a right-wing senator sent as bullying a letter demanding ‘transparency’ from a progressive advocacy group.”