Warren and Deaton clash over crypto regulation in Senate race

During a Massachusetts Senate debate, Democratic Senator Elizabeth Warren criticised her Republican opponent, attorney John Deaton, for his connections to the cryptocurrency industry. 

Warren, a vocal advocate for stricter digital asset regulation, accused Deaton of prioritising crypto interests over those of working-class Americans, citing that 90% of his campaign funding comes from the sector. 

She stated, “If John Deaton goes to Washington, his crypto buddies will expect a return on their investment.”

Deaton, known for supporting Bitcoin (CRYPTO:BTC) and his role in the Ripple v. SEC case, defended his stance by sharing a personal story. 

He highlighted how Bitcoin provided financial solutions to individuals, including his mother, who struggled with banking fees. 

“Bitcoin offered a way to cut out the predatory banks and middlemen,” Deaton explained, positioning himself as an advocate for those marginalised by traditional finance.

The Republican candidate also took aim at Warren's economic policies, criticising her focus on curbing crypto instead of tackling inflation. 

“I wish Senator Warren attacked inflation the way she attacks crypto,” Deaton quipped, questioning her decision to build what she calls an "anti-crypto army" amid broader economic challenges.

Warren remained steadfast, reiterating her concerns that digital assets facilitate illicit activities like money laundering and human trafficking. 

“I just want crypto to follow the same rules as every bank, stockbroker, and credit union,” she said. 

She further pressed Deaton on what his supporters in the crypto sector expected in return for their financial backing, questioning why the industry funds a large portion of his campaign.

Deaton accused Warren of favoring banks over the working class, pointing to her support for regulations that would restrict Bitcoin self-custody for individuals while allowing banks to offer similar services. 

“Her bill bans Bitcoin self-custody in America, but she’s allowing banks to custody Bitcoin,” he argued.

Known for his advocacy in the Ripple (CRYPTO:XRP) case, Deaton highlighted his efforts to expose regulatory overreach and support small investors. 

He referenced Ripple's $1 million donation to a super PAC backing his campaign, noting, “If I hadn’t taken on the SEC on behalf of small investors, that donation to your candidate of choice wouldn’t have happened.”

Warren has consistently voiced concerns about crypto, warning that it exposes consumers to risks, facilitates illegal activities, and contributes to environmental issues through Bitcoin mining. 

Her opposition has drawn criticism from the industry, but she maintains that strong regulations are necessary to protect consumers and the financial system.