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Elizabeth Warren willing to 'collaborate' with crypto industry (but reiterates it must follow tradfi rules)

Elizabeth Warren willing to 'collaborate' with crypto industry (but reiterates it must follow tradfi rules)

The BlockThe Block2024/02/28 13:01
By:The Block

Quick Take U.S. Sen. Elizabeth Warren (D-MA) said she wanted to “collaborate” with the crypto industry but renewed her stance that it must follow the same rules as traditional finance.

Elizabeth Warren willing to 'collaborate' with crypto industry (but reiterates it must follow tradfi rules) image 0

United States Senator Elizabeth Warren (D-MA) said she is willing to collaborate with the crypto industry but reiterated that it must follow the same rules as traditional finance.

“I want to collaborate with the industry. What I don't understand is why the industry seems to be saying that the only way that they can survive is if there's plenty of space for the drug traffickers and the human traffickers,” Sen. Warren said in an interview with Bloomberg Television on Tuesday. “Oh, and the terrorists and the ransomware scammers and the consumer scammers and the rogue nations, North Korea that is financing about half of its nuclear missile program with crypto, that all of that has to be left open.” 

Sen. Warren sits on both the Senate Finance Committee and the Committee on Banking, Housing and Urban Affairs. She has been critical of crypto and has recently pushed her anti-money laundering bill, which would extend Bank Secrecy Act requirements, including know-your-customer rules, to crypto miners, validators and wallet providers. 

The Massachusetts Senator reiterated her stance that it must follow the same rules as traditional finance. “Keep in mind, in our financial system, pretty much everybody follows the same set of rules,” she said. “I'm talking banks and credit unions and credit card companies, gold traders and stockbrokers. Private equity now has to follow the rules. Precious metal dealers, Venmo, Western Union, but not crypto.”

In Warren’s view, the crypto industry represents the same kind of activity with the same kind of risk, arguing that it didn’t need a specific form of regulation but that existing laws must be enforced. “I just want a level playing field here if you're part of the financial system moving around literally billions of dollars. Remember, my bill is not a regulatory bill. It's a bill about law enforcement,” she said.

“I think that's the right thing, and I welcome anybody who wants to come in and make that happen. Frankly, I don't understand a defense that says no, we’ve got to make sure that there is a place for those guys to play without getting caught,” she added.

Taking on Warren's anti-crypto army

Warren’s remarks were made in response to a question regarding pro-crypto attorney John Deaton — who aims to challenge for her Massachusetts seat in the fall — suggesting “tens of millions of dollars in crypto backpacks that could be weaponized against” her this election cycle.

Known for his advocacy of the crypto space, Deaton has frequently criticized Warren and Securities and Exchange Commission Chair Gary Gensler's approach to cryptocurrency regulation. Deaton previously founded CryptoLaw, a website focusing on crypto legal and regulatory developments, and filed a petition in 2021 challenging the SEC's claim that XRP is a security.

However, to challenge Warren in the general election, Deaton must first win the GOP nomination against at least four other candidates in the September primaries.

Sen. Warren, seeking her fourth term as a U.S. Senator, is known for her often critical stance on crypto and desire to build up an "anti-crypto army" as part of her re-election campaign.


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