U.S. lawmakers have raised considerations in regards to the revolving door between monetary regulators and the crypto trade. “Over 200 government officials have moved between public service and crypto firms,” the lawmakers stated, including that they embrace 31 Treasury Department officers and 28 Securities and Exchange Commission (SEC) officers.
Revolving Door Between Financial Regulators, Like SEC, and Crypto Industry
Five U.S. lawmakers have despatched a letter to seven monetary regulators inquiring about measures they’re taking to forestall the revolving door between their businesses and the crypto trade. The letters, dated Oct. 24, had been signed by Sen. Elizabeth Warren (D-MA), Sen. Sheldon Whitehouse (D-RI), Rep. Rashida Tlaib (D-MI), Rep. Alexandria Ocasio-Cortez (D-NY), and Rep. Jesús G. “Chuy” García (D-IL).
The letters had been despatched to Securities Exchange Commission (SEC) Chair Gary Gensler, Commodity Futures Trading Commission (CFTC) Chair Rostin Behnam, Treasury Secretary Janet Yellen, Federal Reserve Chair Jerome Powell, Federal Deposit Insurance Corporation (FDIC) Acting Chair Martin Gruenberg, Office of the Comptroller of the Currency (OCC)’s Acting Comptroller of the Currency Michael J. Hsu, and Consumer Financial Protection Bureau (CFPB) Director Rohit Chopra.
“We write seeking information about the steps your agency is taking to stop the revolving door between our financial regulatory agencies and the cryptocurrency (crypto) industry,” the lawmakers wrote. “The crypto sector has rapidly escalated its lobbying efforts in recent months, spending millions in an attempt to secure favorable regulatory outcomes as Congress and federal agencies work to craft and enforce rules to regulate this multi-trillion dollar industry.”
As a part of this affect marketing campaign, crypto companies have employed a whole lot of ex-government officers … and we’re involved that the crypto revolving door dangers corrupting the policymaking course of and undermining the general public’s belief in our monetary regulators.
“According to the Tech Transparency Project, over 200 government officials have moved between public service and crypto firms, serving as advisers, board members, investors, lobbyists, legal counsel, or in-house executives,” the letter particulars.
The lawmakers added that they embrace a minimum of 31 Treasury Department officers, 28 SEC officers, 15 CFTC officers, six Federal Reserve officers, 5 OCC officers, three CFPB officers, and two FDIC officers.
The letter continues:
These officers be part of a minimum of eight former members of Congress, 79 former congressional staffers, and 32 former White House officers who’re presently advising or lobbying for crypto pursuits.
“Americans should be confident that regulators are working on behalf of the public, rather than auditioning for a high-paid lobbying job upon leaving government service. The rapidly spinning revolving door out of government and into the crypto sector, however, undermines both imperatives,” the lawmakers pressured.
Their letters conclude with an inventory of questions regarding every company’s tips to forestall a revolving door with the crypto trade. For instance, one query asks about what ethics and transparency guidelines are in place to make sure the integrity of company officers. Another query considerations how every company protects its insurance policies from being unduly
influenced by present or former workers’ potential conflicts of curiosity. The regulators had been requested to offer solutions by Nov. 7.
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