US lawmakers raised concerns about revolving doors between financial regulators and the crypto industry
- “Over 200 Government Officials Have Moved Between Public Service and Crypto Firm”
- Five US lawmakers have sent letters to seven financial regulators asking about the measures they are taking to prevent the revolving door of the crypto industry
- Letter has also asked regulators how they are involved in regulating the crypto industry
Letters have been sent by five lawmakers to seven financial regulators because of the revolving door between financial regulators. Financial regulators have been asked about the measures they are taking to prevent the revolving door between their agencies and the crypto industry.
“Over 200 government officials have moved between government services and crypto firms,” the lawmaker said, also adding that they include 31 officials of the Treasury Department and 28 officials of the Securities and Exchange Commission (SEC).
The letter dated October 24 was 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. Jesus G “Chuy” Garcia (D-IL)
The letters were sent to Securities Exchange Commission (SEC) Chairman Gary Gensler, Commodity Futures Trading Commission (CFTC) Chairman Rostin Behnam, Treasury Secretary Janet Yellen, Federal Reserve Chair Jerome Powell, Federal Deposit Insurance Corporation (FDIC) Acting Chairman Martin Gruenberg, Office of the Comptroller of the Currency (OCC) Acting Comptroller of the Currency Michael J. Hsu and Consumer Financial Protection Bureau (CFPB) Director Rohit Chopra.
In the letter, the people who have been asked how they are involved in regulating the crypto industry are barred from applying for work in it. The US has raised concerns that the crypto firm could name former financial regulators and government officials and influence the decision of the government.
They explained
“As part of this lobbying campaign, crypto firms have hired hundreds of former government officials, and we are concerned that the crypto revolving door risks corrupting policymaking and undermining public trust in our financial regulators.
“According to the Tech Transparency Project, over 200 government officials have moved between public service and crypto firms, serving as advisors, board members, investor lobbyists, legal advisors or internal managers,” the letter
The letter continues
“These officials join at least eight former members of Congress, 79 former congressional staffers and 32 former White House officials who currently advise or lobby crypto interests.
The lawmaker also said that “Americans should be confident that regulators are working on behalf of the public, rather than auditioning for a high-paying lobbying job when they leave public service. The rapidly spinning revolving door out of government and into the crypto sector, however, undermines both imperatives.” “
At the end, the letter posed a list of questions asking the agencies about their policies to prevent the revolving door with the crypto industry.
