Crypto leaders intensify lobbying with claims against US lawmakers
The US Securities and Exchange Commission (SEC) has gone through pressure from the legislative branch; tension increased as the SEC drafted measures for crypto regulations that earned displeasure from various people, especially the lawmakers.
Lawmakers are now scrutinizing the watchdog. They have also noticed the increasing lobbying from the crypto space in recent months.
In a recent report from a Fox Business journalist Eleanor Terrett revealed a letter from some lawmakers to the SEC chairman. Terrett reported that the letter came from Senator Elizabeth Warren and Representative Alexandria Ocasio-Cortex to Gary Gensler.
The lawmakers demanded that SEC Chairman Gensler explain his actions to stop the recurring problems between the regulator and the crypto industry.
Crypto leaders try to influence regulations
In the letter, Senator Warren cited that the major crypto players have escalated their lobbying approach in recent months. The action led to them receiving millions of dollars to secure favorable regulatory positions for the operations.
In particular, regulatory agencies know about the recent events in other sectors of the country’s economy. As a result, the US Congress and federal agencies are committed to maintaining and enforcing regulatory standards to protect the crypto industry.
However, several crypto-related companies have spread their employment net among former government officials. Recently, they have hired hundreds of them to help their campaigns against some regulatory measures.
Senator Warren therefore expressed concern about how such moves by the crypto industry create corruption risks in policy-making. The actions also undermine public confidence in regulators and their activities.
The SEC has been committed to investigating major digital asset exchanges and service providers. In addition, it aims to regulate and enforce the necessary rules when handling unregistered securities such as virtual assets.
But some recent reports indicate division among the commission’s leaders over some regulatory frameworks and actions.
Government officials are moving to digital asset companies
According to a statement from the inspector general, there is a lapse on the part of the SEC. It noted that the commission’s staff lacks the knowledge to draft regulations for the crypto market.
The general pointed out that Gensler’s regime caused several exits among the commission’s staff. It noted that the SEC had lost more than 20% of its senior lawyers and officials.
For his part, Terrett mentioned that the report misrepresented the digital assets industry. According to the report, the most important player in the sector includes Coinbase, Stellar and Ripple. Furthermore, it placed Ripple as the top rival for Coinbase.
Furthermore, in the letter to the SEC, Senator Warren cited the Tech Transparency Project. This supported around 200 government officials moving to crypto companies from government offices. The officials now hold positions as board members, advisers, managers, investors or lobbyists in their offices.
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