BOSTON, MASSACHUSETTS – Senator Elizabeth Warren, known for her skepticism toward cryptocurrencies, could face a significant challenge in her reelection bid from a proponent of the industry. John Deaton, a digital assets advocate and attorney from Massachusetts, is seriously contemplating running as a Republican candidate, according to reports by the Boston Globe. Deaton, who has been consulting with key advisors, including Jim Conroy from Republican Gov. Charlie Baker’s political operation, is expected to make a decision in the coming days.
If Deaton enters the race, he will be the first notable Republican challenger to Warren since she announced her intention to seek another term last year. Warren, who became the state’s first female senator in 2012, has been vocal about her concerns regarding cryptocurrencies and the need for them to adhere to anti-money laundering regulations. She tweeted last month, “It’s time for crypto to follow the same anti-money laundering rules as everyone else. I’ve got a bill to make it happen.”
Warren’s bill, called the Digital Asset Anti-Money Laundering Act, was introduced to the Senate in July and aims to close loopholes in anti-money laundering rules related to digital assets. Meanwhile, Deaton has been critical of Warren’s oversight of the Securities and Exchange Commission (SEC) and Chairman Gary Gensler. He expressed disappointment that she did not place Gensler in a tough spot concerning crypto regulation.
Deaton, who has over 600 Ripple (XRP) holders as constituents, has accused Warren of failing to engage in proper oversight of the SEC and not doing her job. As an attorney, Deaton has been involved in various cases, including representing asbestos victims. His advocacy for cryptocurrencies reached a new height in 2021 when he filed an amicus brief in the SEC’s lawsuit against Ripple Labs. Deaton argued that XRP should not be considered a security and accused the SEC of overstepping its authority.
The crypto industry has been actively involved in influencing the 2024 elections, with super PACs injecting significant amounts of money into campaigns. One of the new crypto-focused super PACs, Fairshake, recently launched a multimillion-dollar ad campaign against Democrat Katie Porter in a California primary. Fairshake, along with affiliated super PACs Protect Progress and Defend American Jobs, collectively amassed nearly $80 million in funding in 2023.
With Deaton’s potential entry into the Senate race and the increased involvement of the crypto industry in political campaigns, Massachusetts voters can expect a more heated contest in the upcoming election cycle.