Warren Remarks at Spotlight Forum on Need for Strong Ethics Guardrails to Prevent Trump Crypto Corruption

Warren Remarks at Spotlight Forum on Need for Strong Ethics Guardrails to Prevent Trump Crypto Corruption

Scott Greytak to Warren: "I've worked on ethics laws at a local level, state level, federal level. I don't think I've ever seen an ethics proposal that is so obviously drafted in the shadow of a single officeholder."

Crypto Scam Victim to Warren: "We know that a lot of times these transnational organized criminals that are stealing from us, crypto is funding their ventures on our backs. It's frankly ludicrous."

Watch exchange here (YouTube)

Washington, D.C. - Today, U.S. Senator Elizabeth Warren (D-Mass.), Ranking Member of the Senate Banking, Housing, and Urban Affairs Committee, delivered remarks and questioned witnesses at a spotlight forum convened by the Permanent Subcommittee on Investigations Minority co-chaired by Ranking Member Richard Blumenthal (D-CT) and Senator Chris Van Hollen (D-MD), a Member of the Banking Committee, on President Trump's crypto corruption and the risks posed by the Clarity Act.

Transcript of Ranking Member Warren's exchange below:

Senator Warren: I want to say a very special thank you to Senator Blumenthal and Senator Van Hollen for putting this hearing together today. And to you, Senator Murphy and Senator Durbin, for coming and talking.

You know, you all have laid out very well what the grift is all about. I just want to pick up on another part of it. Donald Trump made $1.4 billion that we know of on his crypto scam in the first year, and he's well now into the second year.

We hear this kind of thing, and so often there's nothing we can do. It feels like, right? Oh, Congress can't move. It can't act. They can't do this. They can't do that. Not this time. This time there is a bill ready to go, right? The parties are out there. The Republicans in the Senate and some Democrats in the Senate are saying, let's push a bill through. So it's the perfect moment. When you see a scam like this $1.4 billion just on a part of this scam, then the question is great you're about to pass a bill that's going to be--it's going to set up the rules for what happens with crypto. Surely this is a problem that you know how to fix and that you will fix in the bill. So let's just stop and take a look and see if that's so.

Miss Cantor, you have advised presidents on ethical conduct while they're in office. President Trump, let's start with made $636 million from his $TRUMP meme coin last year. Is there anything in the Clarity Act, this bill that is now pending in front of the United States Senate, that would stop Donald Trump from making another $636 million this year and next year, and the year after and the year after. If this bill becomes law?

Virginia Canter: No, Senator, the bill would not prohibit him from earning licensing fees, and in fact, it would allow him there's an express provision that would allow him to make appearances at, you know, meme coin events if he chose to do that.

Senator Warren: So he could just keep right on keeping on making this kind of money?

Virginia Canter: Yes

Senator Warren: Let me ask you one more. He made over $525 million from another of his crypto projects. These are the tokens associated with the family's crypto company, World Liberty Financial. Is there anything in the pending bill, the Clarity Act, that would stop him from making another $525 million this year, or the next year, or the next year from the World Liberty Financial tokens?

Virginia Canter: No, senator, there's nothing in the Clarity Act that would bar him from making another $535 million.

Senator Warren: I think that's the point we have to underline here. We know how to fix this problem. It's just that right now, the bill that is roaring through doesn't say a word. And this is not a victimless crime. This is not something that just happens out there in the ether.

Miss Flowers, you're here today because you're someone who's been ripped off by this. I know you've had a chance to talk before, but if you could just say one more time, not just about how it feels to be ripped off, but how it feels to come to the United States Senate and to know that a bill is pending that very well may go through and become law and does nothing to shut down this kind of corruption?

Lori Flowers: It's hard to make it make sense. I would like to be clear, I would never have purchased a Trump branded anything. Not a steak, not a tuition class, not a meme coin. But the grift is so insulting when you think about Americans who are being fleeced every day, not trying to make a buck, but because crypto is the pathway for criminals to use. And it's the easiest, most friction-free way to rob Americans. I just have to say, with the America First Agenda, and we know that a lot of times these transnational organized criminals that are stealing from us, crypto is funding their ventures on our backs. It's, it's it's frankly ludicrous. And I appreciate you asking my humble opinion on this panel.

Senator Warren: Yeah. Well, I appreciate your being here because I see the Clarity bill as insulting to the American people. Sometimes you get fooled. Sometimes, despite your best efforts, people get fooled. Sometimes Congress gets fooled. But boy, not this time. Donald Trump has made clear what his scam is. Other scams are right out here where we can see them, where criminals are able to step up their activity because crypto gives them that special advantage to be able to get the money and hide who they are. You know, it's also happening with terrorists being able to use crypto and the risk that crypto poses to the entire financial system. We've got the whole question about, in effect, shadow banking here and what that's going to mean. We know what the problems are. We see a bill that's moving and yet we don't fix it because? Anyone want to speculate on why that is? Mr. McKenzie?

Ben McKenzie: Because the crypto lobby has spent hundreds of millions of dollars influencing.

Senator Warren: So you're telling me it's just one other scam?

Ben McKenzie: Absolutely. The Clarity Act provides perfect clarity as to what the crypto industry actually cares about. It doesn't give a rat's ass about its customers, if you'll excuse me, as long as it can continue, the insiders can continue to get filthy rich in the process.

Scott Greytak: It's actually interesting. You know, I've worked on ethics laws at a local level, state level, federal level. I don't think I've ever seen an ethics proposal that is so obviously drafted in the shadow of a single officeholder. I mean, as Ginny said, the sunset for enforcement is noon on January 20th, 202[9]. Like you may as well just written the name into the bill.

Senator Warren: That's right.

Scott Greytak: Let alone the loopholes of how he's currently making money that are entirely preserved. So I think that tells you everything you need to know in addition to the SEC.

John Reed Stark: I agree, I find it, and it's also this innovation ruse that SEC Chairman Atkins has become the big promoter of and it really it's really mind boggling. For instance, you'll hear them say, well, we need to pass this Clarity Act because otherwise we will lose to China. The innovation battle. I don't know what they're talking about. Crypto mining is illegal in China. Cryptocurrency is illegal in China. Stablecoins are illegal in China. What? What are they talking about? It's like saying, you know, hey, we've got to deregulate winter resorts because, you know, ski resorts because Jamaica is a real threat to them. So I think that I agree with Ben that, you know, you're talking about big money, but it's also this idea that this technology is innovation. We all have to ask the question about all this crypto nonsense. For what? What is it doing that's good? It's stealing from people. It's enabling terrorism, enabling ransomware, enabling human sex trafficking, enabling drug dealing, enabling child pornography, purchasing every single crime is exponentially easier. It created the crime of ransomware. And yet, for whatever reason, we have to talk about this industry like it's so great, for what? What is it doing that's good? If it all went away tomorrow, nobody would care.

Senator Warren: What is it doing? It's making a handful of very wealthy people even wealthier at everyone else's expense. And right now they're spreading enough money around Congress that they think they're going to be able to get the laws that they want to cement this in place. Our job is to fight back. Thank you.

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