In a contentious debate about cryptocurrencies, Senator Elizabeth Warren attacks John Deaton’s connections to the sector and his political contributions.
During a heated debate on Tuesday night co-hosted by WBZ and The Boston Globe, Democratic Senator Elizabeth Warren (D-MA) accused her Republican opponent, lawyer John Deaton, of having too much ties to the cryptocurrency industry.
Warren, a long-time advocate for stricter digital asset regulations, argued that Deaton’s campaign funding heavily favors crypto interests.
A Heated Debate Over Crypto Regulation and Economic Priorities
According to Senator Warren, Deaton puts the interests of the cryptocurrency industry ahead of those of Americans from the working class.
“One candidate standing here gets 90% of their campaign funding from one industry—the crypto industry. One candidate has openly admitted that 80% of his personal worth is tied to crypto,” she stated. “If John Deaton goes to Washington, his crypto buddies will expect a return on their investment. He’s going to be there to fight for crypto.”
Deaton, who is well-known for his outspoken backing of Bitcoin and his legal defense during the SEC’s legal battle with Ripple, refuted Warren’s allegations with a personal story.
He explained how people without banks, like his mother, could now afford to avoid paying exorbitant banking fees thanks to cryptocurrency, especially Bitcoin.
“When Bitcoin came along, I thought of my mom, who couldn’t maintain a bank account due to fees. Bitcoin offered a way to cut out the predatory banks and middlemen,” Deaton said.
The discussion heated up as Deaton accused Warren of concentrating her criticism on cryptocurrencies while ignoring urgent financial problems like inflation.
“I wish Senator Warren attacked inflation the way she attacks crypto,” he quipped, questioning her creation of what she calls an “anti-crypto army.”
Warren reiterated her concerns regarding cryptocurrency, characterizing it as a tool for money laundering, human trafficking, and terrorism financing.
Epic takedown of Elizabeth Warren by John Deaton …pic.twitter.com/oSL6NQlve4
— Mario Nawfal (@MarioNawfal) October 17, 2024
“I just want crypto to follow the same rules as every bank, stockbroker, and credit union,” Warren said.
Warren’s position on Bitcoin self-custody was further questioned by Deaton, who claimed that she was supporting banking institutions over the working class.
“Her bill bans Bitcoin self-custody in America, but she’s allowing banks to custody Bitcoin,” he argued, suggesting her policies do not serve ordinary people.
Warren questioned Deaton about his connections to the cryptocurrency world and what insiders expected in exchange for their financial support.
“I’m just trying to understand why crypto folks are so mad at him—so mad that they’re funding 90% of his campaign,” she remarked.
Warren vs. Deaton: The Battle for the Senate and the Future of Crypto Regulation
Having secured the Republican nomination, John Deaton entered the Senate race to run against Warren.
In the ongoing Ripple case, he rose to prominence in 2021 after he filed a petition challenging the Securities and Exchange Commission’s classification of XRP as a security.
Prominent figures in the cryptocurrency space, such as Tyler and Cameron Winklevoss, founders of Gemini and Ripple Labs, have thrown their support behind his initiative.
Ripple Labs donated $1 million to a super PAC aimed at unseating Warren.
Earlier this year, Senator Warren introduced a bill to expand the scope of the Bank Secrecy Act to include wallet providers, validators, and miners.
Warren stayed true to her position on the risks associated with cryptocurrencies throughout the discussion, claiming that Bitcoin mining contributes to environmental degradation, exposes users to fraud and volatility, and facilitates illegal activity.
Warren acknowledged that industry lobbyists have targeted her because of her anti-crypto stance in a message to supporters in response to Deaton’s candidacy, but she insisted she is not “afraid” to take on the challenge.