Crypto Quill

The Blockchain Association, a leading non-profit organization that advocates for the digital asset economy and its environment, has issued a response to Senator Elizabeth Warren’s criticism of the crypto industry’s hiring practices. The association argues that the former government officials who joined the crypto sector did so because they value freedom and creativity, not because they want to obstruct regulation.

Warren questions crypto hiring motives

Senator Warren, a vocal critic of the crypto industry, sent letters to several crypto advocacy groups, including the Blockchain Association and Coin Center, in December 2023. She expressed her concern that some government officials may be using their positions to “audition” for jobs in the crypto sector, while compromising the public interest. She also cited rumors that some crypto groups had assembled a “small army” of former law enforcement, national security, and defense personnel with the goal of impeding the regulation of digital assets.

Warren asked the crypto groups to disclose the names and roles of any former government employees they had hired or consulted with, as well as any compensation or benefits they had received. She also requested information on any lobbying or advocacy activities they had conducted or funded related to crypto regulation.

Blockchain Association responds with an open letter

Kristin Smith, the CEO of the Blockchain Association, wrote an open letter to Warren on January 9, 2024, offering the association’s cooperation to address the senator’s concerns. Smith said that the Blockchain Association is proud and fortunate to have many former government officials among its members and partners, who have chosen to work in the emerging digital asset industry after leaving public service.

Smith wrote:

“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, not because they seek to undermine the rule of law or the public interest.”

Smith also highlighted the benefits of having former government officials in the crypto sector, such as their expertise, experience, and perspective on complex and evolving issues. She said that they help the industry to comply with existing laws and regulations, as well as to engage constructively with policymakers and regulators to foster innovation and growth.

Smith invited Warren to meet with the Blockchain Association and its members to discuss the opportunities and challenges of the digital asset economy, and to learn more about the association’s mission and values. She said that the association is committed to promoting a safe, fair, and transparent crypto ecosystem that benefits consumers, businesses, and society.

Coin Center CEO slams Warren’s letter as a “bullying publicity stunt”

Coin Center, another prominent crypto advocacy group, also received a letter from Warren in December 2023. However, the group’s CEO, Jerry Brito, was less diplomatic in his response. He described Warren’s letter as “impertinent” and a “bullying publicity stunt” that violated the privacy and autonomy of a charitable organization.

Brito said that Warren’s letter implied that the public “deserves transparency” from crypto groups, but that these groups “deserve no privacy from government intrusion”. He said that Warren’s letter was based on false assumptions and unsubstantiated rumors, and that it was an attempt to intimidate and silence the crypto industry.

Brito said that Coin Center has nothing to hide, and that it has always been transparent about its activities and funding. He said that Coin Center does not lobby or advocate for any specific crypto projects or companies, but rather for the general principles of decentralization, privacy, and innovation. He said that Coin Center welcomes any constructive dialogue with policymakers and regulators, but that it will not tolerate any threats or harassment.

Warren remains a staunch critic of the crypto industry

Senator Warren, who represents Massachusetts, has been one of the most vocal critics of the crypto industry in the US. She has supported several proposals that aim to curb the illicit use of crypto assets for terrorism financing, money laundering, and tax evasion. She has also raised concerns about the environmental, consumer protection, and financial stability risks posed by crypto assets.

Warren has faced backlash from the crypto community, who accuse her of being misinformed, biased, and hostile towards the industry. Some have also called for her to adopt a more positive and open-minded approach to financial innovation and inclusion.