Elizabeth Warren Pushes Back at Blockchain Lobbying Efforts

The Blockchain Association’s efforts to lobby the U.S. Congress, in what Politico called a “not-so secret weapon,” is an affront to efforts to stop Hamas and other terror groups using crypto to finance themselves, Sen. Elizabeth Warren (D-Mass.) said in a letter to the group’s chief executive, Kristin Smith.

“I write regarding a troubling new report that your association and other crypto interests are … working to undermine bipartisan efforts in Congress and the Biden Administration to address the role of cryptocurrency in financing Hamas and other terrorist organizations,” Warren wrote.

The narrative that crypto provides material support to Hamas, however, has been disproven. Blockchain analytics firms contest the Wall Street Journal claims of extensive crypto funding that Warren cites in her letter, saying the actual amount is in the thousands of dollars rather than tens of millions.

U.S. lawmakers have asked President Biden and Treasury Secretary Yellen to assess the extent of cryptocurrency use by Hamas for fundraising, amidst debates about the scale and impact of such activities, CoinDesk previously reported.

“The response of the crypto industry appears to be focused on delaying and denying new rules that would restrict crypto’s use by terrorists and criminals,” Warren wrote.

Revolving doors and ethics

In the letter, Senator Warren took aim at a “revolving door” that the industry uses to “give itself a veneer of legitimacy.”

The industry is “fighting tooth and nail to stonewall common sense rules designed to restrict the use of crypto for terror financing – rules that could cut into crypto company profits,” Warren wrote.

Warren asked for information on the employment of former government officials by crypto firms, highlighting concerns about the “revolving door” of public officials moving into private-sector roles and potentially influencing legislation and regulatory activities related to crypto, anti-money laundering and terrorist financing.

Nearly two-thirds of former members of the 115th U.S. Congress, which ended in January 2019, found employment outside politics, with many influencing federal policy through lobbying or strategic consulting jobs, a 2019 study from Public Citizen found.