The US Securities and Exchange Commission (SEC) has passed pressure from legislative bodies. Tensions have risen as the SEC devised measures of crypto regulation that have drawn displeasure from various people, especially lawmakers.
Lawmakers are now scrutinizing watchdogs. They also noted an increase in lobbying activity from the crypto industry in the past few months.
recently report Fox Business journalist Eleanor Terrett has published letters from several lawmakers to the SEC chairman. She reported that the letter was sent to Gary Gensler by Senator Elizabeth Warren and Congresswoman Alexandria Ocasio Cortex, Terrett reported.
Lawmakers have asked SEC Chairman Gensler to explain his actions to stem repeated issues between regulators and the cryptocurrency industry.
Crypto Leaders Seek to Influence Regulation
in the letterSenator Warren said major crypto players have escalated their lobbying approach in the past few months. Secured.
In particular, regulators know about recent events in other sectors of the country’s economy. As a result, the U.S. Congress and federal agencies are committed to maintaining and enforcing regulatory standards to protect the cryptocurrency industry.
However, some crypto-related companies are expanding their employment net among former government officials. Recently, they hired hundreds to help campaign against some regulatory measures.
Senator Warren therefore expressed concern about how such moves from the cryptocurrency industry create risks of corruption in policy making. It undermines public trust.
The SEC has engaged in investigations of major digital asset exchanges and service providers. Furthermore, it aims to regulate and enforce the rules necessary to treat unregistered securities as virtual assets.
However, several recent reports indicate that there is disagreement among the Commission’s executives regarding some regulatory frameworks and actions.
Government Officials Move to Digital Asset Firms
The SEC made a mistake, according to the Inspector General’s statement. He pointed out that the committee staff lacked the knowledge to frame crypto market regulation.
The general pointed out that Gensler’s administration had caused the dismissal of some of the commission’s staff. The SEC said it lost more than 20% of its senior attorneys and officials.
Terrett said the report misinforms about the digital asset industry. According to the report, the most important players in this space include Coinbase, Stellar, and Ripple. In addition, he has positioned Ripple as Coinbase’s biggest competitor.
Additionally, Senator Warren cited the Tech Transparency Project in a letter to the SEC. This confirms that around 200 government officials have moved from government offices to cryptocurrency companies. Officials currently hold positions as board members, advisors, executives, investors or lobbyists.
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