Operation Choke Point 2.0 part of Sen. Warren's re-election campaign

If there was any doubt that politicians in Washington have it out for the cryptocurrency industry, those doubts have been laid to rest with the launch of Senator Elizabeth Warren’s re-election campaign, which has set out to create an “anti-crypto army,” according to a Twitter post from the Democrat from Massachusetts.
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Warren now appears to be making her fight against crypto a centerpiece of her re-election campaign, but recent polls suggest that it might not be the best position to take as Americans struggle with rising inflation, lost purchasing power, and the growing threat of global de-dollarization.
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Warren is attempting to capitalize on any negative sentiment that exists as a result of the events of 2022 – including the collapse of Terra/Luna last May and the highly publicized bankruptcy of the FTX cryptocurrency exchange in November – but so far, she has only elicited pushback.

For the crypto community, this is yet another attack that follows a ramp-up in Operation Chokepoint 2.0, which is all part of a concerted effort to demolish the crypto industry in the U.S. As a result, the majority of the community has derided Warren’s move, while some, like Stacks (STX) cofounder Muneeb Ali, have been motivated to take action in opposition.

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In 2022, Massachusetts Senator Elizabeth Warren authored a bill that would require cryptocurrency wallet providers to comply with bank Anti-Money Laundering rules. Not crypto exchanges, mind you, but the wallets themselves. Kansas Senator Roger Marshall joined her on the proposal as a co-sponsor.

Sadly, Marshall betrayed the populist principles he ran on as a candidate. The bill also betrayed the civil liberties and privacy tenets of progressivism that Warren espouses.

Warren and Marshall are planning to reignite that debate on Capitol Hill this summer ...

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Senator Elizabeth Warren's (D-Mass.) controversial Digital Asset Anti-Money Laundering Act (DAAMLA) was originally introduced in December and did not go anywhere. It was met with little fanfare and considerable criticism.

Smith, however, provided a glimmer of hope for the industry during the panel, saying that a pro-crypto "army," including the Blockchain Association, are fighting "in Washington every day" for the industry. "There's a reason that Elizabeth Warren has stalled her bill that's because she lost co-sponsors," Smith said. "And that was because of the lobbying effort and education effort that went on," from the pro-crypto groups."
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Sen. Elizabeth Warren’s anti-cryptocurrency crusade is facing pressure from her own party.

Dozens of Democrats, including Senate Majority Leader Chuck Schumer, have broken with her in recent days and supported an effort to undo SEC guidelines that critics say discourage banks from holding digital assets. The Democrats defied not only Warren, but also President Joe Biden, who is threatening to veto the rollback. The rift may grow further next week when the House takes up sweeping, industry-backed legislation to incorporate crypto trading into federal financial regulations.

The sudden burst of support, following waves of scandals and the skeptical posture generally taken by the Biden administration, is rattling some Democrats who see looming risks to consumers and the financial system.
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The party’s Capitol Hill clash over crypto policy comes as the issue is becoming more prominent in the 2024 campaign. Former President Donald Trump is courting crypto fans, though they may represent a small minority of the electorate, and signaling that he’d rein in the SEC’s crackdown on the industry. Crypto super PACs are poised to spend more than $80 million to influence control of Congress and secure friendlier policy. It’s leaving Democrats at odds over whether to follow Warren’s push to clamp down on crypto firms or to take a friendlier approach.
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