Tempers flared on Capitol Hill Wednesday as a Senate Banking Committee hearing meant to examine cryptocurrency legislation erupted into a fiery back-and-forth between Sen. John Kennedy (R-LA) and former White House ethics lawyer Richard Painter.
Painter, who served as Associate Counsel to President George W. Bush, has become an outspoken critic of political campaign contributions from the cryptocurrency industry, often taking to social media to sound the alarm. His public criticisms, including those aimed at lawmakers like Sen. Kirsten Gillibrand (D-NY), became the flashpoint of Wednesday’s confrontation.
“Mr. Painter, do you think Senator Gillibrand is a crook?” Kennedy asked bluntly at the start of a tense exchange.
“No, and I do not think all politicians are crooks,” Painter replied.
Kennedy pressed him further. “Then why did you call her a crook?”
“I did not call her a crook,” Painter responded.
The two then began talking over each other, with Kennedy referencing a tweet where Painter noted that Senator Gillibrand had received over $200,000 in crypto-related campaign donations.
“You tweeted that,” Kennedy said. “And then you said, ‘The crypto industry is buying Congress and the White House. This won’t end well.’ Why do you think the crypto industry is buying Senator Gillibrand?”
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The hearing, which focused on the proposed CLARITY Act—a bill designed to define regulatory jurisdiction over digital assets between the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC)—quickly derailed into personal accusations and name-calling.
The CLARITY Act originated in the House and is scheduled for a vote next week, where it is expected to pass. The Senate, meanwhile, is playing catch-up after passing the GENIUS Act last month, which set a framework for stablecoin regulation.Painter defended his comments by pointing to the influx of crypto money into politics. “I said, look at the campaign contributions from this industry,” he said. “There is a massive amount of campaign contributions coming into this Congress from the crypto industry.”
Painter refused to back down. “Senator, you need to focus on this bill instead of trying to distort my Twitter.”
The argument spiraled further when Kennedy accused Painter of calling Gillibrand a crook and demanded an apology. “Do you want to apologize to Senator Gillibrand?” Kennedy asked.
Painter, visibly agitated, snapped back: “I do not, I want you to have to apologize for passing legislation that destroys our economy. You are distorting what I said, just like you did in the last hearing. You’re wasting everybody’s time, Senator.”
“You’re a whack job,” Kennedy then added. “You are a next-level whack job!”
The CLARITY Act, despite the sideshow, remains on track for a House vote next week.