Norbert Michel and Nicholas Anthony
Jimmy “MrBeast” Donaldson is the latest target in Senator Elizabeth Warren’s (D‑MA) crosshairs.
For anyone who might be unfamiliar, MrBeast has built an empire on YouTube. He got his start with gaming videos and silly stunts like counting to 100,000, but he has since changed the lives of countless people for the better. In addition to giving away hundreds of millions of dollars, MrBeast has built 100 wells in Africa, paid for thousands of people with disabilities to receive medical treatment, and much more.
Yet, it’s his latest venture that has caught Senator Warren’s attention. Senator Warren is concerned that MrBeast is expanding to financial services after purchasing the banking app Step. MrBeast said he started the venture because he wanted “to give millions of young people the financial foundation I never had.” Senator Warren wants to know how the North Carolinian entrepreneur plans to make that work—asking for answers about how the company markets to younger audiences, its approach to cryptocurrency, and its banking partners.
Although Step requires parental permission for its under-18 users, Senator Warren isn’t impressed. She wrote to MrBeast, saying, “Despite Step’s careful claims that crypto investing by minors was only with the permission of a parent or guardian, Step published resources encouraging kids to pressure their parents into crypto investments.” Despite her careful probing, it seems that Senator Warren believes this new venture is a way to steal money from children—right under the noses of their parents.
Unfortunately, government officials thinking they know what is best for other people’s children (and even adults) is nothing new. However, parents have already shown they can handle coaching their children through financial services. MrBeast might be an exciting new face in financial services, but companies like Fidelity, Wells Fargo, and Chase already offer these services to help kids learn about finance.
The US government itself has spoken in favor of these services. The Federal Reserve, Federal Deposit Insurance, Financial Crimes Enforcement Network, National Credit Union Administration, and Office of the Comptroller of the Currency issued a joint statement to “encourage financial institutions to develop and implement programs to expand the financial capability of youth and build opportunities for financial inclusion for more families.” In fact, even Senator Warren’s own creation, the Consumer Financial Protection Bureau, has said, “Even a small savings account for your child could make a powerful difference in their future.”
However, what’s more troubling than paternalist policymaking is that officials have a history of trying to shut down new, innovative products. Senator Warren infamously campaigned with the slogan “Elizabeth Warren is Building an Anti-crypto Army,” and she was a key figure in Operation Choke Point 2.0.
Sending a letter to ask questions might seem innocent, but it’s clearly meant to send a message. Senator Warren is the ranking member for the US Senate Committee on Banking, Housing, and Urban Affairs. For such a high-ranking official to question a newly formed business like this effectively signals that neither MrBeast nor other new competitors are welcome in the financial system.
Given that Senator Warren has historically criticized businesses with too much power, it’s a shame that she doesn’t see the value in new competitors in the financial system. That is something that should be welcomed, not chased away. If nothing else, Senator Warren should welcome the efforts of someone who bases his life on helping people.