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(Kitco News) - If there was any doubt that U.S. Senator Elizabeth Warren (D-Mass.) has it out for the cryptocurrency industry, those doubts have been laid to rest with the launch of her re-election campaign, which has set out to create an “anti-crypto army,” according to a Twitter post from the Democrat from Massachusetts.
“I’m in this fight to put our government on the side of working families,” Warren said in a tweet posted on Wednesday, which included a short video listing some of her policy positions, including one that states: “Elizabeth Warren is creating an anti-crypto army.”
The crypto ecosystem’s response has been as expected, with many pushing back against the Senator, calling her outdated, and saying things like, “Imagine thinking that building an "Anti-crypto army" is going to win you votes?”
While the pushback has been immense, most were not surprised at Warren’s position as she has a well-established history of making statements in opposition to the crypto industry and pushing for what some consider to be heavy-handed, anti-crypto legislation. This includes the re-introduction of the Digital Asset Anti-Money Laundering Act of 2022, which Warren co-sponsored with Senator Roger Marshall (R-Kan.).
The Act is intended to close loopholes that terrorists and other bad actors currently exploit to launder funds via crypto transactions. If passed, the bill will establish a new framework for regulating digital assets and would require crypto exchanges and other virtual asset service providers to comply with the Bank Secrecy Act (BSA) and other anti-money laundering (AML) laws.
Warren now appears to be making her fight against crypto a centerpiece of her re-election campaign, but recent polls suggest that it might not be the best position to take as Americans struggle with rising inflation, lost purchasing power, and the growing threat of global de-dollarization.
According to the results of a survey commissioned by Coinbase that was conducted from February 10-14, a majority of Gen Z adults (54%) and Millennials (55%) agree that cryptocurrency and blockchain are the future, which is a sentiment shared by 76% of cryptocurrency holders across all age ranges.
The same study found that 80% of American adults are frustrated by the inequality in the financial system and think it favors those with “powerful interests,” with 67% of respondents agreeing that the financial system needs major changes or a complete overhaul while only 4% say that no changes are needed.
A separate survey commissioned by digital asset management firm Grayscale Investments in November showed similar results, particularly with Warren’s voting base, as 59% of Democrats considered crypto to be the future of finance as compared to 51% of Republicans.
Warren is attempting to capitalize on any negative sentiment that exists as a result of the events of 2022 – including the collapse of Terra/Luna last May and the highly publicized bankruptcy of the FTX cryptocurrency exchange in November – but so far, she has only elicited pushback.
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| Regulating crypto has become a bridge to bipartisanship in the U.S. Congress |
For the crypto community, this is yet another attack that follows a ramp-up in Operation Chokepoint 2.0, which is all part of a concerted effort to demolish the crypto industry in the U.S. As a result, the majority of the community has derided Warren’s move, while some, like Stacks (STX) cofounder Muneeb Ali, have been motivated to take action in opposition.
There is only one logical response to @SenWarren’s declaration of war on crypto: let’s fund their opponents.
— muneeb.btc (@muneeb) March 30, 2023
We’ll raise Bitcoin & crypto capital to fund their opponents. Show them the power of decentralized communities.
Step 1: Start BTC and ETH DAOs ??
In a follow-up tweet from Ali, the developer highlighted the potential downside to this move that Warren may not have considered. “I voted for democrats: you’ve now lost my vote,” Ali wrote. “I also donated to both Democratic & Republican Party members who were learning about Bitcoin & crypto. I’m pausing all political donations to democrats until they sort this with @SenWarren. Others in our industry should do the same.”
“Declaring war on technological progress is beyond ridiculous. Declaring war on open-source, freedom tech is beyond ridiculous,” Ali concluded.
