Deaton criticised Warren for her anti-crypto stance and accused that she had neglected more important matters like inflation and access to banking. Warren has defended this stance and insisted that crypto regulations should be aligned with bank rules. Coinbase, meanwhile, is doing its best to inform lawmakers such as Warren about the low percentage of cryptocurrency that’s actually being used in illegal transactions. World Liberty Financial, the crypto project of the Trump family, had a slow launch after it went live, with only 3.4% sold out its $300 million target.
Deaton slams Warren’s Anti-Crypto Focus
John Deaton, a crypto-lawyer and Senator Elizabeth Warren clashed in their first debate over the US Senate seat located in Massachusetts. They argued about their opinions and positions on crypto regulations and other important issues. Deaton – the Republican candidate – criticized Warren’s decision to prioritize the creation of a “anti crypto army” above other serious issues like illegal immigration and inflation. Deaton also asked why Warren chose to concentrate on crypto regulations and not other pressing issues.
Warren Deaton and their debate. (Source:CBS Boston )
Warren has defended her position, stating that she doesn’t have a problem with people purchasing and selling cryptocurrency, but she does believe the industry should adhere to the same regulations as stockbrokers and banks, particularly in regards to protecting consumers and enforcing anti-terrorism legislation. Warren reiterated that cryptocurrency is often used to finance illicit activities like terrorism or drug trafficking. Regulations are therefore crucial.
Deaton accused Warren, despite the fact that both candidates agreed the banking system had failed many Americans. Warren was accused of neglecting banking accessibility. Deaton specifically referred to a Senate Banking Committee meeting in December where Warren asked JPMorgan CEO Jamie Dimon questions.
Deaton believes that she should have concentrated more on the failures of banking instead of crimes involving cryptography. Deaton criticized Warren as well for failing to address JPMorgan’s involvement in Jeffrey Epstein’s child trafficking operations during the hearing.
Warren responded by noting that Deaton received 90% of his campaign funding from the crypto-industry, and that these supporters would expect favours in exchange if Deaton were to be elected. Deaton had a different take on Warren’s claim, stating that Warren often took positions which angered the crypto industry. She also said that there are still ongoing disputes between her and several “crypto millionaires.”
Massachusetts Senate polls (SourceThe Hill )
Deaton won the Republican primary in Massachusetts, on September 4. According to The Hill 2024 Elections, Warren leads Deaton in the polls by 22,5%. She plans to continue the Democrats 11 year control of both US Senate seats.
Better Crypto Laws through Education
Phillip Martin, chief security officer at Coinbase, said that the company has made it a top priority to inform the public about the cryptocurrency and its links with illicit finance. Martin said that more informed lawmakers are better able to make effective decisions. He also stated that lack of knowledge often results in poor legislation, which slows innovation and impedes the growth of the cryptocurrency space.
Coinbase helps US legislators understand safety, security and consumer protection measures in place to help prevent illegal activities in the crypto industry. Martin believes that education is key to dispelling misconceptions, particularly for those who base their opinions on headlines in the media.
The belief that cryptocurrency is used heavily for illicit activities, he argues, is very misleading and needs to be rectified. In a report published by Coinbase on Oct. 1, he noted that only 0.34% (or about 0.34%) of all cryptocurrency transactions are illicit. It is a far cry from the 33% estimated of US cash transactions that are used to commit crimes. The blockchain also provides transparency, measurable data and is easier to implement in traditional financial systems.
Volume of illegal crypto transactions (Source:Chainalysis )
Martin believes that the US election is just around the bend, and that the next President will take a crypto-friendly position. Martin also said that the Democratic Party is likely to soften its stance on crypto, as they recognize that many people support a freer and more equitable financial system.
Crypto Companies should avoid Surprises
At the Ripple event in Miami, the chief legal officer of Ripple and the head of the New York Department of Financial Services Adrienne Harris discussed the state of cryptocurrency regulation.
Harris believes crypto companies need to be transparent and proactive when dealing with regulatory agencies. She also stressed the importance of open communication to prevent surprises. Harris advised that the crypto industry should approach regulators as early as possible to share their long-term plans, even though New York’s regulations are more progressive than federal ones.
Alderoty, during the conversation, asked Harris for advice on how the industry should interact with the regulators. Harris replied that media reports about the industry should not surprise regulators. Companies should instead ensure that regulators have all the information they need about major issues. To improve understanding and collaboration, she also encouraged companies to share their 5-year business plan when engaging regulators.
Harris also acknowledged the US has lagged Europe and other areas in terms of developing clear guidelines. The 2024 US Presidential election was initially viewed as a referendum on crypto policies, but both candidates expressed positive opinions about the sector.
The crypto-industry is now divided. Some supporters of Donald Trump are frustrated with the Biden Administration’s inaction on regulatory issues, and others back Kamala Harris because she has a progressive economic platform.
Trump Family Crypto Project Struggles
The first token sale of the crypto project by the Trumps, World Liberty Financial, had a slow launch. It only sold 3.4% out its $300m goal, and its website crashed shortly after its launch. Sale began on October 15 and 20 billion tokens were offered at 1.5 cents apiece.
In just 14 hours only 687 millions tokens were sold, which is worth about $10,3 million. Etherscan reports that despite claims of more than 100,000 signups prior to the launch, there are only 6,832 wallet addresses with WLFI tokens.
World Liberty Financial’s website went down shortly after token sales began, reportedly because of high traffic. Users reported seeing a notice that the website was under maintenance.
In the project’s White Paper, it is revealed that there are 100 billion WLFI Tokens in total. Total 35% of the tokens will go to eligible participants. Tokens left over will be used for the community, team, initial supporters, and growth.
Trump’s family was a key player in the promotion and development of WLFI. Former President Donald Trump has been named the “Chief crypto advocate” of the platform, while his sons Barron and Eric and Donald Trump Jr. are “Web3 ambassadors”. Trump also took to his social media accounts on October 15th to share his beliefs in cryptocurrency as the future digital economy.
Due to the fact that WLFI is not registered as a security, it can only be purchased by accredited investors in the US. These tokens will not be tradable, but they are used as governance tokens in an Ethereum-based DeFi platform. This platform, which will be an Aave DeFi instance, will let users borrow crypto and lend it, as well as interact with liquidity pool and make stablecoin transactions.
