American cryptocurrency exchange Coinbase has denied allegations made by US Senator Elizabeth Warren, who said that Coinbase is using a “revolving door” tactic to obstruct the implementation of proper crypto legislation.
In a letter published on X on December 23, Coinbase’s Chief Policy Officer Faryar Shirzad strongly opposed the idea, affirming that Coinbase has always advocated for the establishment of a transparent regulatory framework for the cryptocurrency sector in the United States.
The Massachusetts senator, together with members of the Coin Center and the Blockchain Association, sent a letter to the Coinbase exchange on December 19.
The well-known anti-crypto politician said in this letter that crypto companies were taking advantage of the “revolving door” system by hiring ex-military and ex-law enforcement officers to thwart congressional investigations into the potential involvement of digital assets in the funding of terrorism.
Warren declared: “The crypto industry is spending millions to legitimize itself, but it is fighting common-sense regulations that would limit the use of crypto for terror financing. These regulations could reduce crypto company profits, so this abuse of the revolving door is terrible.”
The senator criticized the Coinbase Global Advisory Council, which includes elected officials, political appointees, and former national security experts. Warren claims that these individuals now advocate on behalf of the American exchange.
Warren strongly rejected this tendency, suggesting that several government employees are probably already trying to portray themselves as crypto enthusiasts in order to get a comparable job with these crypto-based businesses down the road.
Coinbase strongly denies Warren’s accusations, calling them a “willful misinterpretation” of their mission and objectives. They are resolute in their commitment to combating illicit cryptocurrency use and promoting appropriate crypto legislation.
Coinbase clarifies that it does not intentionally participate in the revolving door system when recruiting but rather focuses on identifying the best candidates for each open job. This includes former government employees.
The crypto exchange went on to warn the government official that leading with hate speech could turn off innovators in the digital asset space and cause them to leave the United States. By bringing up parallels with mobile phone and semiconductor technologies, Coinbase implied that the United States would be making a “mistake of historic proportions” if it tried to discourage the use of digital assets.
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