Five U.S. Democrats led by Senator Elizabeth Warren written Heads of several financial regulators in the country have asked about the “revolving door” between government agencies and the cryptocurrency industry.
Letter citing Tech Transparency Project reportpointed out that more than 200 former government officials are now working for cryptocurrency companies, playing a variety of roles, from investors to lobbyists.
According to lawmakers, the cryptocurrency industry has grown exponentially in recent years and has escalated its lobbying efforts for favorable regulatory outcomes. One of the ways we were able to achieve this is by hiring a few former government employees.
Lawmakers expressed concern that a “revolving door” could corrupt the policy-making process and undermine public confidence in financial regulators. Americans deserve to be assured that it was not created to ‘fulfill’ the crypto industry’s desire to ‘avoid the kind of regulatory crackdowns it faced elsewhere.’
Sen. Warren and others are now asking financial regulators about ethical guidelines about how long they must wait before seeking work in industries that former employees interacted with or oversaw while in public office. I am asking you to answer
In addition, ethics and transparency rules to ensure agency integrity, challenges faced by agencies in enforcing the ethics of revolving door hiring, and to prevent conflicts of interest with current or former employees. agency policy should be clarified.
Agents must respond to the letter by November 7, 2022.
Former U.S. Officials Taking Crypto Jobs
Several government officials have taken crypto jobs after leaving their previous jobs.
Brian Brooks, Former Acting Commissioner of the Currency served As CEO of Binance US, he also invested in cryptocurrency startup Solidus Labs. Brooks is currently CEO of Bitcoin mining company Bitfury.
Another senior government official who took a job in crypto after stepping down was Jay Clayton, former chairman of the Securities and Exchange Commission (SEC). SEC I started lawsuit against Ripple under his chairmanship.but he served Since leaving office, he has served as an advisor to several crypto-related companies.
Binance recently hired former Federal Bureau of Investigation (FBI) agent BJ Kang as its first head of investigation.
Other senior government officials such as former Commodity Futures Trading Commission (CFTC) Chairman Chris Giancarlo and former SEC Director Brett Redfern also have roles in cryptocurrency companies.