By Michael Scott
Swiss crypto platform termed Senator Elizabeth Warren allegations of ShapeShift’s involvement in illicit financing erroneous comments. ShapeShift regarded the comments made by Senator Elizabeth Warren during the senate hearing as misinformed.
The Switzerland-based crypto firm argued that the submission before the US senate is causing immense reputational damage.
ShapeShift Denies Perpetrating Illicit Financing
The non-custodial crypto firm dismissed US Senator Warren’s pronouncement associating ShapeShift with perpetrating illicit financing. The firm refuted the claims, terming that mentioning the Swiss platform as the scapegoat to advance her interest captured in her crypto bill.
The ShapeShift statement conveyed via February 19 tweet emphasized that Warren’s analysis portrayed several mistakes. The tweet argued that the February 14 submission before the banking committee only served to push the safeguards targeting digital assets. The inclusion of ShapeShift alongside the recent crypto crash only served as the basis to lobby support for stricter crypto regulation.
Swiss Firm Challenges Senator Warren to Embrace Constructive Engagement
The Swiss firm took to Twitter, promising to set the record straight. The firm’s subsequent tweet disputed Warren’s perspective that ShapeShift facilitated illicit financing. Instead, the firm restated its non-custodial business model, arguing that it does not handle clients’ funds. The tweet added that the firm could not facilitate illicit financing.
ShapeShift tweet counters Senator Warren’s suggestion on Valentine’s day that the firm had in July 2021 disguised its ulterior motive to restructure into a decentralized finance (DeFi) platform finally. The senator, now regarded as the scourge of crypto, argued that the restructuring targeted to encourage individuals to utilize the platform in laundering money.
ShapeShift Reiterates a Mutual Focus with Warren
ShapeShift lamented Warren’s use of the firm to reinforce her anti-crypto army. The firm does not offer crypto exchange services. Instead, it runs an open-source crypto dashboard linking users with various protocols and platforms.
ShapeShift reiterated its belief in Warren’s stance on crypto. It identified with the mutual focus on users’ safety and facilitated access to innovation.
ShapeShift challenged Warren to rally the anti-crypto brigade in a constructive engagement. In particular, the Swiss firm encouraged Warren to embrace its discussion forum that vouches for financial freedom and innovation.
ShapeShift tweets come 24 hours after its chief executive Erik Vorhees invited Warren via a February 18 tweet to submit a proposal during the Swiss firm’s DAO governance process. The tweet portrayed a sarcastic response to Warren’s criticism of ShapeShift’s platform.
Warren’s Criticism of SEC Administration
ShapeShift falling on the radar of Warren is unsurprising, given the lawmaker is a vocal critic of cryptos. In a January 25 televised interview, the senator challenged the US Securities and Exchange Commission (SEC) to reinforce its enforcement efforts towards rogue crypto activities.
Senator Warren regretted the laxity portrayed by the SEC administration, greenlighting the expansion of the crypto sector. She argued that the decision left the crypto market vulnerable to junk tokens, Ponzi schemes, and rug pulls.
Warren added that the previous SEC approach left the US crypto sector battling an influx of unregistered securities, money laundering and sanctions evasions.
Tougher Anti-money Laundering Restrictions
ShapeShifts is caught up in inevitable scrutiny triggered by its mention by Senator Warren, who has recently emerged as the lead lawmaker in the purse against rogue cryptos.
The lawmaker is proposing tighter oversight as she rallies support from progressives and conservatives to the proposed bill. The bill would yield sweeping implications through anti-money laundering restrictions obliging crypto operators to verify customer identities.
Crypto advocates are portraying resistance against Warren’s push. The majority are dismissing her inputs as an outlier. Nonetheless, they admit that a recent budding partnership with the Republican lawmakers indicates broader forces united for a common objective.
The anti-crypto brigade features progressives and conservatives comprising bankers and watchdog agencies aiming to derail the accelerated crypto growth.
The progressive Massachusetts Senator is winning support from the conservative legislators to the anti-crypto cause. Her efforts are netting positive vibes from pro-bank lobbyists seeking to rein over the digital asset startups.
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