The Ripple CTO David Schwartz has expressed his displeasure at a letter from U.S. Senator Elizabeth Warren to the CEO of the Blockchain Association on the recent crackdown on crypto.
Schwartz recently shared an image of the letter on X, disclosing his anger at a portion of the document which claims Kristin Smith, the CEO of Blockchain Association, aimed to undermine efforts from Congress at addressing crypto’s role in illicit finance.
This makes me angry. pic.twitter.com/qvgbb9P6ZV
— David "JoelKatz" Schwartz (@JoelKatz) December 19, 2023
Warren’s Crypto Bill
For context, recall that Senator Elizabeth Warren reintroduced the Digital Asset Anti-Money Laundering Act in July, seeking to bring the cryptocurrency industry under the same regulatory oversight as traditional banks. The bill received criticisms from the crypto community, as industry leaders argued it could threaten financial freedom.
However, amid the Israel-Hamas conflict, several media outlets have reported the use of crypto to fund Hamas. These reports have further triggered renewed interest in cracking down on cryptocurrencies, with lawmakers like Sen. Warren leveraging the opportunity to remark on using crypto for illegal financing.
On Nov. 15, the Blockchain Association, a non-profit championing the promotion of Web3 innovation, and other industry leaders expressed dissatisfaction with these remarks and reports in a letter to Congress. They noted that these reports of crypto use in illegal financing were an exaggeration.
Despite the clarification, Senator Warren disclosed on Dec. 11 that her crypto bill had received support from five more senators. Warren claimed the bill aims to mitigate the use of cryptocurrencies for financing terrorist entities such as Hamas. Several organizations also voiced support.
Letter to Blockchain Association CEO
In addition, Warren sent a letter to the Blockchain Association CEO Smith on Dec. 18, claiming that the Nov. 15 letter from the Blockchain Association and concerned stakeholders was an attempt to “undermine” efforts by Congress to tackle the use of crypto for illegal financing.
Speaking on the recent letter from Senator Warren, Smith clarified that the senator looked to question the involvement of former law enforcement and military officers in their role in crafting the Nov. 15 letter.
Smith charged Senator Warren to focus on identifying and tackling the perpetrators of crypto abuse for illegal financing rather than those looking to help in this regard. She revealed that an invitation to Sen. Warren last month to discuss the matter was turned down.
The entire crypto community now stands behind the Blockchain Association, condemning the bipartisan bill and the recent efforts, which are believed to be an avenue to crack down on the crypto industry. The Ripple CTO is among those who have voiced their criticisms of the latest developments.
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