Coinbase has refuted claims by US Senator Elizabeth Warren, which suggests that the American crypto exchange is employing a “revolving door” strategy to block the process of effective crypto regulation.
In a letter posted on X on December 23, Faryar Shirzad, Chief Policy Officer of Coinbase, strongly condemned this notion, stating that Coinbase has always been committed to the implementation of a clear regulatory framework for the American crypto industry.
Warren’s Claims
On December 19, Senator Warren, of Massachusetts, wrote a letter to the Coinbase exchange alongside crypto advocacy groups the Coin Center and Blockchain Association.
In this letter, the prominent anti-crypto legislator accused these crypto entities of misusing the “revolving door” system by employing former military and law enforcement personnel in a bid to counter efforts by US lawmakers in addressing the possible role of digital assets in terrorist financing.
Warren said:
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.
The senator took a swipe at the Coinbase Global Advisory Council, which consists of several former national security advisers, political appointees, and even elected lawmakers, all of whom, Warren says, now act as lobbyists for the American exchange.
Warren strongly criticized this trend, insinuating that many current government workers are likely already angling as crypto advocates with the aim of securing a similar position with these crypto-based entities in the future.
Coinbase Responds, Cautions Senator Against ‘Harmful Rhetoric’
In Coinbase’s rebuttal to Warren’s allegations, the crypto exchange states that the Senator’s claims are a “willful misinterpretation” of its mission and objectives as they are fully committed to the fight against the use of cryptocurrency for illegal activities and the implementation of proper crypto legislation
In regards to employing former government workers, Coinbase explains that its hiring policy is based on finding the best talent for each position rather than actively engaging the revolving door system.
Furthermore, the crypto exchange also advised the government official against championing hateful rhetoric that could push digital asset innovators away from the US. Coinbase referenced similar occurrences with semiconductors and mobile phone technology, implying that discouraging the adoption of digital assets would be a “mistake of historic proportions” for the US.
At the time of writing, the total crypto market cap stands at $1.625 trillion, with a 0.84% gain in the last day. Meanwhile, the market leader Bitcoin, is down by 0.11% and currently valued at $43,520.