Crypto gets mention on national stage during Congressional debate

Sitting US Senator Elizabeth Warren and Republican nominee John Deaton faced off Tuesday night in a debate as the race for the Massachusetts seat continues.

Deaton, an attorney with a soft stance on cryptocurrency regulation, entered the race in February, saying he wanted to “shake things up for the people who need it most.” Warren, however, argued Tuesday night that Deaton is really only interested in protecting “his crypto buddies,” who have made up the majority of his campaign donations.

Deaton has raised $2.05 million, about half of which was from a personal loan he made himself. A pro-Deaton super Political Action Committee, Commonwealth Unity Fund, has raised an additional $2.6 million, FEC filings show. Deaton’s supporters include Gemini co-founders Tyler and Cameron Winklevoss, and current and former Ripple CEOs Brad Garlinghouse and Chris Larsen.

Warren has raised $8.2 million since the beginning of 2023.

Deaton on Tuesday countered Warren’s characterization of the crypto industry, arguing that bitcoin and digital assets can help elevate marginalized communities. He pointed to his mother, who he said struggled to maintain minimum balances required by banks and often faced additional fees that would be avoided through blockchain transactions.

Warren, taking an uncharacteristic stance, said it’s “fine” if people want to invest in bitcoin and other cryptocurrencies, as long as safety is the top priority. The comment comes months after Warren wrote that the US Securities and Exchange Commission was “wrong on the law” when they approved spot bitcoin ETFs at the beginning of this year.

The latest polls from earlier this month (with the debate not factored in) have Warren leading Deaton, 56% to 34%.

Deaton notched the Republican nomination last month, earning almost two-thirds of votes. Historically, Warren has a strong track record against Republicans. In 2012, she won her seat by defeating incumbent GOP Sen. Scott Brown with 53% of the vote. In her most recent election in 2018, she secured re-election by a 60%-to-36% margin against Republican Geoff Diehl.

A modified version of this article first appeared in the daily Forward Guidance newsletter. Subscribe here so you don’t miss tomorrow’s edition.

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