Cryptocurrency exchange Coinbase has denied Massachusetts Senator Elizabeth Warren's allegations that it employed former government officials to impede the progress of regulations for digital assets.
In a letter dated December 22, Coinbase's Chief Policy Officer, Faryar Shirzad, rejected Sen. Warren's claims and asserted that the exchange continues to responsibly and actively advocate for regulatory measures in the crypto industry.
“Your claim that Coinbase is attempting to undermine bipartisan legislation related to cryptocurrency is simply wrong. Your accusations are not only unfounded but a willful misrepresentation of our intentions and efforts.”
We responded to Senator Warren's letter accusing @coinbase of hiring national security veterans as a way to fight bipartisan legislation.
— Faryar Shirzad ️ (@faryarshirzad) December 23, 2023
In our response, we said that:
- We are very proud of our record of rooting out illicit activity on our platform, and of our deep partnership…
Shirzad also stated that the exchange's recruitment of government personnel is part of a broader initiative aimed at safeguarding the well-being of crypto users in the United States.
“We take immense pride in our team of national security experts, who dedicate themselves daily to protecting Americans,” the letter stated.
Related: More US senators back Elizabeth Warren’s AML bill targeting crypto
Warren’s letter implied that many government officials could be laying the groundwork while in public service to “audition” for digital asset lobbying positions. She pointed to Coinbase’s Global Advisory Council as an example. The letter stated:
“This abuse of the revolving door is appalling, revealing that the crypto industry is spending millions to give itself a veneer of legitimacy while fighting tooth and nail to stonewall common sense rules designed to restrict the use of crypto for terror financing – rules that could cut into crypto company profits.”
This comes after recent news that Coinbase has expanded its Global Advisory Council with four national security experts.
On November 7, Cointelegraph reported the council is set to adopt a more strategic approach with the addition of new members, all of whom have previously occupied senior positions in government.
Mark Esper is a former U.S. secretary of defense, Stephanie Murphy is a former congressperson and a national security expert, Frances Townsend was homeland security adviser to former U.S. President George W. Bush, and David Urban is a former managing director of BRG Group.
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