Blockchain Association Criticizes Elizabeth Warren’s Proposal

The non-profit organization Blockchain Association (BA) has opposed U.S. Senator Elizabeth Warren’s proposal for increased scrutiny of government employees joining cryptocurrency companies, reports The Block.

The group’s statement responds to Warren’s December letter, in which she accused BA and other industry companies of employing a “not-so-secret weapon” in the form of former Department of Defense and law enforcement personnel. 

According to her, organizations hire former government sector workers to “undermine efforts to identify the financing of terrorist groups.” 

Warren requested information on how many former military, government officials, or members of the U.S. Congress currently work at the Blockchain Association and what their responsibilities are. 

BA CEO Kristin Smith stated that the association currently does not employ such individuals, although some are members. 

“While Blockchain Association currently has no employees with the credentials mentioned in your first question, we are fortunate and proud to have many former military, national security, intelligence, and law enforcement personnel among our members,” Smith emphasized. 

The BA CEO believes that after leaving government roles, these individuals could have pursued many professions, but “they were drawn to work in the emerging digital asset industry because they value freedom and creativity, personal sovereignty, and innovation.” 

In her response letter, Smith also rejected all of Warren’s legislative initiatives. She stated that applying the Bank Secrecy Act to individuals and users “is very costly.” 

“Blockchain Association and its members intend to continue defending our constitutional rights by petitioning the government and speaking freely on this issue,” concluded the head of the organization. 

Earlier, Warren, along with colleague Roger Wayne Marshall, introduced a bill tightening AML requirements for the use of digital assets.

In March 2023, the senator urged authorities to take action against “sham audits” of cryptocurrency companies. 

Back in December, support grew for Warren’s proposed bill to introduce KYC procedures for “wallets, miners, validators, and other network participants.”