Coinbase Refutes Senator Warren’s Claim of Misusing “Revolving Door” Strategy

American cryptocurrency exchange Coinbase has refuted claims made by Senator Elizabeth Warren which suggests that it engaged the “revolving door” strategy to impede the process of crypto asset regulation. Precisely on December 19, Sen. Warren wrote a letter to Coinbase as well as to crypto advocacy groups the Coin Center and Blockchain Association.

In her letter, the Senator made strong allegations against the aforementioned entities, stating that they were abusing the “revolving door” system by involving former government officials like national security veterans to stagnate the crypto regulation progress. 

Sen. Warren Condemns Coinbase’s Hiring Strategy

A look at Coinbase’s Global Advisory Council showed that it has several former national security advisers, political appointees, as well as elected lawmakers. According to Warren, most of these officials now serve as lobbyists for the crypto exchange. Having these officials in its “corner” made it easier for Coinbase to counter the effort made by United States policymakers towards addressing the part crypto plays in funding terrorism, per Sen. Warren’s claim. 

She vehemently condemned this pattern while pointing out the possibility that other government officials may begin to plan towards occupying similar positions in other crypto entities in the near future. 

Coinbase Slams Sen Warren of Willful Misrepresentation 

In a December 23 letter that was posted on the X app, Coinbase’s Chief Policy Officer, Faryar Shirzad, outrightly denied the accusations, calling its “willful misinterpretation” of its objectives. Shirzad explained that its hiring policy is directed towards getting the best talent for the position, not necessarily a strategy to exploit the revolving door system.

“Your claim that Coinbase is attempting to undermine bipartisan legislation related to cryptocurrency is simply wrong. Your accusations are not only unfounded but a willful misrepresentation of our intentions and efforts,” Shirzad stated.

Coinbase’s Push For Crypto Regulatory Clarity 

Furthermore, he cited that the crypto exchange has been a core proponent of pushing for regulatory clarity in the digital assets sector, a move that caused a lot of trouble between Coinbase and the Securities and Exchange Commission (SEC). He also added that Coinbase is keen on joining the fight against illegal use of digital assets. 

In the end, Coinbase Chief Policy Officer advised Senator Warren to desist from making such hateful rhetoric statements that could chase innovators away from the U.S.