Bitrabo Editorial
The recent debate between US Senator Elizabeth Warren and crypto attorney John Deaton has raised eyebrows regarding Warren’s stance on cryptocurrency. Her less aggressive comments during the discussion have prompted speculation within the community.
Senate Candidates Clash in Massachusetts
Democratic Senator Elizabeth Warren, noted for her strong criticism of cryptocurrency, took the community by surprise with her remarks during the Massachusetts Senate debate against John Deaton, a lawyer supportive of crypto.
The candidates displayed starkly different views, as debate moderators highlighted. Previously, Warren expressed intentions to form an “anti-crypto army,” labeling the industry a “threat to financial stability.” In contrast, Deaton has criticized Warren and the federal government’s aggressive approach to regulating the sector.
During the debate, Warren expressed her willingness to embrace digital assets, contingent upon the industry adhering to the same regulations as traditional financial institutions, marking a shift from her historical hostility.
I’m all for having a crypto system if people want to buy and sell crypto. All I want is some basic fair rules, the same kind of fair rules that should apply to all of our financial institutions.
Deaton, however, pointed out that the existing regulations are adequate and questioned the rationale behind Warren’s past stance on forming an anti-crypto group given the current climate.
Moreover, Deaton indicated that Warren’s policies may not benefit lower-income individuals, arguing that they could potentially “hurt poor people.” He also wished that Warren would address issues like inflation and border security with the same intensity she applies to crypto regulation.
Warren countered by suggesting that if Deaton were to go to Washington, he would advocate for the crypto sector, as it is backed by significant contributions from industry players to his campaign.
Interestingly, Vice President Kamala Harris’ presidential campaign has also seen crypto contributions. As reported by Bitrabo, she received her first documented crypto donation, amounting to $1 million in XRP from Ripple’s co-founder.
Is Warren Supporting Crypto?
The debate’s aftermath has led to mixed reactions from the community, questioning Warren’s softer rhetoric. Fox Business journalist Eleanor Terrett speculated whether Warren was softening her anti-crypto position, noting her approach was less hostile than usual.
However, Alex Thorn, the head of research at Galaxy, countered this idea. In a post, he asserted that Warren’s statements remained consistent with her previous positions, emphasizing that her call for “same rules as the banks” could effectively mean stricter oversight that risks penalizing blockchain networks:
No, Warren’s being consistent. May seem reasonable when she says, “same rules as the banks.” But she means applying BSA compliance to non-custodial entities like wallets, software devs, smart contracts, miners, and validators, which is effectively a ban on blockchain networks themselves.
Similarly, investors expressed their dissatisfaction with Warren’s statements. Scott Melker, host of The Wolf Of All Streets podcast, accused Warren of being deceptive and criticized her for attacking Deaton’s crypto holdings while misrepresenting her past positions on the matter.
Ultimately, many in the community interpreted Warren’s remarks as a “trojan horse,” suggesting that her intent was not a genuine move towards collaboration with the crypto industry.
