Massachusetts Senator Elizabeth Warren and New York Representative Alexandria Ocasio-Cortez have called on regulators to clarify rules regarding former employees seeking work in the cryptocurrency industry.
of letternews site punch bowlwas sent to the heads of seven institutions, including the two major regulators responsible for crypto, the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC).
Legislators should specify how long individuals are barred from industry roles they interacted with while working in regulatory positions, and what other safeguards are in place to protect against conflicts of interest. I asked.
They claim the crypto sector has “rapidly escalated its lobbying efforts in recent months,” citing reports compiled by advocacy groups. citizen and watchdog groups Technical Transparency Project.
“As part of this influence campaign, cryptocurrency companies have hired hundreds of former senior government officials,” said Sen. Sheldon Whitehouse (D.R.I.) and President Jesús G. D-Illinois) and Rashida Tlaib (D-Michigan).
“We have long been aware of the revolving door in other sectors of the economy, from big tech to the defense industry to other parts of the financial services sector, and the risk that the cryptocurrency revolving door could undermine the policy-making process. It undermines public confidence in our financial regulators.”
Senator Warren has been an outspoken critic of the cryptocurrency industry. Earlier this month, she led another group of lawmakers seeking information on: Bitcoin mining energy usage in Texas.
Ocasio-Cortez, on the other hand, Said She does not believe lawmakers should hold or trade cryptocurrencies or other financial assets to avoid conflicts of interest.
The upcoming midterm elections will also provide opportunities for cryptocurrency executives to participate in campaigns.
even on coinbase Recently Added Features Allow users to see which politicians are “crypto-friendly” in preparation for voting.
But the industry also faces opposition from politicians and the rest of the tech sector. in June, 26 technical experts signed the letter Encourage lawmakers to take a skeptical approach to the claims of cryptocurrency advocates.