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Elizabeth Warren: Bitcoin Basher to Bank Buddy — Senator’s Crypto Transformation Raises Eyebrows

Last Updated December 11, 2023 11:03 AM
Teuta Franjkovic
Last Updated December 11, 2023 11:03 AM

Key Takeaways

  • Senator Elizabeth Warren called cryptocurrencies a “threat” and aligned herself with major banks on the issue.
  • The shift from her previous stance towards banks has sparked from NSA whistleblower Edward Snowden of being “bought and paid for.”
  • Crypto advocates have publicly criticized Warren’s apparent change of heart.

Recently, US Senator Elizabeth Warren claimed crypto was a potential threat. Jamie Dimon, the CEO of investment bank JPMorgan, echoed a similar sentiment, saying he would shut down crypto if he had the authority.

In response to the statements made by Warren and Dimon, Edward Snowden, the former National Security Agency (NSA) contractor and whistleblower, criticized Warren for her apparent alignment with banks.

Crypto Critic Warren Aligns with Big Banks, Sparking Concerns

Democratic Senator Elizabeth Warren of Massachusetts has emerged as a vocal critic of cryptocurrency, recently calling it a “threat” . This shift towards an apparent alignment with the banking sector, previously her target of criticism, has raised eyebrows.

During a Senate banking committee hearing, the Massachusetts Senator engaged in discussions with executives from major banks. Notably, she seemed to agree with them on the topic of cryptocurrency regulation. This is a shift from her previous adversarial relationship with the banking industry.

Warren said:

“I am not usually holding hands with the CEOs of multibillion-dollar banks — But this is a matter of national security.”

Supporters of digital currencies strongly disapprove of Warren’s stance. The statements made by the Massachusetts politician have been met with ridicule and criticism, with Edward Snowden accusing her of being “bought and paid for by the banks”. On December 8, 2023, whistleblower and privacy advocate Edward Snowden delivered a pointed critique  of the politician, expressing his sentiments on Twitter.

Snowden, despite voicing concerns about the privacy aspects of cryptocurrencies, is a supporter of the crypto space. He has alluded to considering the purchase of bitcoin (BTC) at specific price levels and has acknowledged using BTC for pseudonymous server payments.

Senator Warren did not immediately respond to a request for comment.

Warren’s evolving position underscores the intricate dynamics between traditional finance and the emerging realm of digital currencies. While crypto advocates like Snowden persist in challenging her perspectives, the narrative emphasizes the significant influence of cryptocurrency at the intersection of politics, finance, and technology.

DOJ Fines Binance and Treasury Warns Industry to Clean Up Its Act

In the previous month, the Department of Justice announced a $4.3 billion settlement with Binance, the world’s largest cryptocurrency exchange, resolving criminal charges related to money laundering.

Additionally, the Treasury has expressed its intention to take action against illicit activities in the crypto space. Deputy Secretary Wally Adeyemo delivered a stern message to the Blockchain Association , emphasizing the need for the crypto industry to eliminate bad actors or face regulatory intervention.

Adeyemo specifically addressed “those within the digital asset industry who believe they are above the law, those that willfully turn a blind eye to the law, and those that promote assets and services that aid criminals, terrorists, and rogue states.” He warned: “We will find you and hold you accountable.”

The future of crypto regulation remains uncertain. One thing is clear: the industry can no longer afford to ignore increasing scrutiny from financial watchdogs.

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