Blockchain Association criticizes Senator Elizabeth Warren’s call for greater oversight of the hiring of former officials by crypto firms

Warren believes this undermines efforts to identify cryptocurrency financing of terrorist groups

09.01.2024 - 12:38

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3 min

What’s new? Representatives of the Blockchain Association, a lobbying group, have spoken out against US Senator Elizabeth Warren’s proposal to increase oversight of cryptocurrency companies’ hiring of former officials. In December, Warren criticized industry organizations for hiring former defense and law enforcement officials. She said this undermines congressional efforts to examine the role of cryptocurrencies in terrorism financing.

Material by The Block

What else is known? Warren asked for information on how many former military and civilian officials or members of Congress currently work for the Blockchain Association and what their responsibilities are. The organization’s CEO Kristin Smith responded that no such people currently work for the group, but some are members.

According to Smith, these people could have chosen many careers after leaving government, but “they were drawn to work in the emerging digital asset industry because they value freedom and creativity, sovereignty of the individual, and permissionless innovation.”

In late 2023, Warren proposed strengthening anti-money laundering measures in cryptocurrencies. The bill calls for mandatory customer identification for all service providers, including wallet providers, miners, and validators.

According to Smith, there is a tremendous cost to enforcing the Bank Secrecy Act on individuals and users. “Blockchain Association and the individuals that make up its membership intend to continue to exercise our Constitutional rights by petitioning the government and speaking freely on this issue,” she said.

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