US Senate Crypto Hearing Derailed by Bizarre Outburst

In today’s Senate crypto hearing, Senator John Kennedy derailed the proceedings with a strange outburst. He accused one witness, Dr. Richard Painter, of being a “next-level whackjob” over a month-old tweet on industry campaign contributions.

This tirade was particularly odd because the tweet addressed a Democratic Senator, and Kennedy himself is a Republican who hasn’t received substantial donations from the industry. Crypto enjoys limited bipartisan support, but it might be fragile.

Senate Crypto Hearing Goes Off the Rails

Crypto regulation is a pressing concern for the US legislature right now, with important bills advancing through the House and Senate.

House Committees have been preparing to examine the suite of extant bills, and the Senate Banking Committee conducted a hearing to interface with crypto industry leaders.

However, today’s crypto hearing took a strange turn when John Kennedy, a Republican Senator, came to ask questions.

After Richard W. Painter, a former White House ethics lawyer, gave his testimony about impending legislation, Senator Kennedy began grilling him about a social media post. Painter made this post in May, and it was not directly relevant to today’s testimony.

Specifically, Painter’s post called attention to BeInCrypto’s exclusive coverage of the crypto industry’s political contributions to Senator Gillibrand:

“Do you think Senator Gillibrand is a crook? Why do you think the crypto industry is buying Senator Gillibrand? Do you want to apologize?” Kennedy asked. When Painter accused him of wasting the Committee’s time and asked him to keep the discussion centered on impending legislation, Kennedy called him a “next level whackjob.”

Considering the intense acrimony between Republicans and Democrats, this rant seems a little strange. Senator Kennedy’s comments disrupted the hearing, and he never actually disputed that Gillibrand received extensive crypto campaign contributions.

Moreover, Kennedy himself was not a recipient of crypto donations in his last election.

So, why would Senator Kennedy do this? Even if Gillibrand’s crypto contributions were relevant to today’s hearing, she isn’t a Republican. If anything, Kennedy should be jumping at the chance to accuse a Democrat of political corruption.

This incident may illustrate the level of bipartisan crypto support in Congress. Several Democrats, some of whom testified at today’s hearing, vocally oppose the crypto industry and worked to impede impending legislation.

As a pro-crypto Democrat, Senator Gillibrand has been instrumental in passing several bills.

In other words, the two Senators are, broadly speaking, on the same side of this issue.

Moreover, focusing on Painter’s months-old tweet turned the hearing away from his actual testimony against crypto legislation. Kennedy’s outburst kept the assembled Senators from dwelling on potential criticism of the industry.

Still, this bizarre incident may highlight a fragile situation. Many crypto firms are actively courting Democrats, but Trump’s industry ties are becoming a political liability for them.

Incidents like this might make the liability more pressing. If Democratic voters turn against pro-crypto politicians, it could spell trouble for bipartisan initiatives.