Democratic Senator Elizabeth Warren launched a pointed attack on her Republican opponent, attorney John Deaton, during a heated Massachusetts Senate debate co-hosted by WBZ and The Boston Globe late Tuesday evening, accusing him of being beholden to the crypto industry.

Warren, a longtime advocate for tighter regulation on digital assets, claimed Deaton prioritized crypto interests over the needs of working-class Americans. 

“One candidate standing here gets 90% of their campaign funding from one industry—the crypto industry. One candidate has openly admitted that 80% of his personal worth is tied to crypto,” Warren said during the debate. 

“If John Deaton goes to Washington, his crypto buddies will expect a return on their investment,” the senator added.  "He’s going to be there to fight for crypto."

Deaton, a vocal supporter of Bitcoin, shared a personal story about how crypto offered a lifeline to unbanked individuals, including his mother, who struggled with predatory banking fees. 

“When Bitcoin came along, I thought of my mom, who couldn’t maintain a bank account due to fees. Bitcoin offered a way to cut out the predatory banks and middlemen,” Deaton explained.

The Republican candidate also criticized Warren for focusing on attacking crypto instead of addressing inflation and economic issues. 

“I wish Senator Warren attacked inflation the way she attacks crypto,” Deaton quipped, questioning her decision to build what she has termed as an "anti-crypto army" amid ongoing broader economic woes.

Warren remained steadfast, reiterating her well-worn narrative regarding crypto as a means to facilitate money laundering, human trafficking, and terrorism financing. 

“I just want crypto to follow the same rules as every bank, stockbroker, and credit union,” she said.

Deaton also brought up Warren’s stance on Bitcoin self-custody, accusing her of favoring banks over the working class. “Her bill bans Bitcoin self-custody in America, but she’s allowing banks to custody Bitcoin,” he said, arguing her policies do not benefit ordinary people.

Warren, in turn, pressed Deaton on his connections to the crypto industry, repeatedly asking what crypto insiders expected in return for their financial support of his campaign.

“I’m just trying to understand why crypto folks are so mad at him—so mad that they’re funding 90% of his campaign,” she remarked.

Deaton, known for his involvement in the Ripple v. SEC lawsuit, highlighted his advocacy for XRP holders during the case, which he said helped expose regulatory overreach and protect small investors.

 He further noted that his actions led to a significant XRP donation to Vice President Kamala Harris’s campaign from Ripple co-founder Chris Larsen.

“If I hadn’t taken on the SEC on behalf of small investors, that donation to your candidate of choice wouldn’t have happened,” Deaton told Warren. “Madam Vice President, if you’re watching, you’re welcome.”

In July 2024, Ripple Labs donated $1 million to a super PAC supporting Deaton’s campaign. The company, currently involved in a legal battle with the SEC, supports Deaton’s run in an effort to unseat Warren.

Warren herself has consistently voiced concerns over crypto, warning that digital assets expose consumers to fraud and volatility, facilitate illicit activities, and contribute to environmental degradation through Bitcoin mining. 

Back in February, in response to Deaton entering the race, Warren sent her supporters an email stating her stance against "crypto scams" has made her the target of industry lobbyists but that she isn't "afraid" of taking on the challenge.

She argues that stronger regulations are necessary to protect both consumers and the broader financial system.

Edited by Sebastian Sinclair