Anti-crypto US senator shows concerning lack of knowledge of crypto

By: Ali Raza
Ali Raza
Ali was a News Reporter at Invezz covering the cryptocurrency markets and blockchain industry. He has 8 years of… read more.
on Sep 21, 2021
  • Anti-crypto Senator raised a lot of concerns among crypto enthusiasts during recent dialogues with MakerDAO.
  • According to the delegate who spoke with the Senator’s, it appears that they are not familiar with DeFi.
  • The Senator, or her representatives, do not differentiate Maker from The DAO — a project that failed in 2016.

Recently, a concerning new piece of information emerged during the talks between developers of a popular DeFi project MakerDAO (MKR/USD) and the office of an anti-crypto Senator Elizabeth Warren. According to what is known, it appears that the Senator and her office have shown a concerning lack of familiarity with one of DeFi’s largest projects, and the DeFi sector itself.

A screenshot that emerged yesterday, September 20th, shows a portion of the discussions of the MakerDAO community, showing that the MakerDAO Governance delegate known as PaperImperium actually had a hard time explaining to the Senator that Maker is not the same project as The DAO — an experimental decentralized autonomy organizations project that failed five years ago after a major hack.

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Senator’s office doesn’t seem to know who it meets with

As many likely know, MakerDAO is currently the sixth-largest DeFi protocol, featuring a TVL of $8.2 billion. However, this massive popularity in the DeFi sector seemingly wasn’t enough to get the Senator interested in the project, as the delegate concluded. They added that there will be another meeting in a few weeks to which they have already committed to, but so far, it seems clear that the Senator’s office did not do its due research of whom they are even communicating with.

There was a bit of confusion, however, as the screenshots indicate that the delegate had been in communication with Senator Warren directly, while a thread from Maker’s governance forum, started on September 17th, indicates that the meeting will be with Warren’s economic and banking advisors.

The dialogues themselves are a result of MakerDAO’s efforts to establish direct communication between the crypto industry and the lawmakers in an attempt to educate lawmakers and explain potentially confusing aspects of the crypto industry.

As for the Senator, she has called the crypto industry a lousy investment, the new shadow bank, and even said that it is worth considering prohibiting US banks from holding reserves to back private stablecoins.

In other words, officials are actively working on disrupting the crypto industry in the US without even knowing anything about it and attending meetings without bothering to research who they are meeting with. This is deeply concerning for the future of crypto, which is in the hands of lawmakers who do not know the first thing about it.

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