US lawmakers have expressed concern about the revolving door between financial regulators and the crypto industry. “More than 200 government officials moved between public services and cryptocurrency companies,” lawmakers said, including 31 Treasury Department officials and 28 Securities and Exchange Commission (SEC) officials. It added that people were included.
A revolving door between financial regulators like the SEC and the crypto industry
Five US lawmakers have sent letters to seven financial regulators asking about the measures they are taking to prevent a revolving door between government agencies and the cryptocurrency industry. 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-New York) ), and Congressman Jesus G. “Chui” Garcia (D-Illinois).
The letter was signed by Securities and Exchange Commission (SEC) Chairman Gary Gensler, Commodity Futures Trading Commission (CFTC) Chairman Rostin Behnham, Treasury Secretary Janet Yellen, Federal Reserve Chairman Jerome Powell, Sent to Martin Gruenberg, Deputy Executive Director of the Federal Deposit Insurance Corporation (FDIC). Deputy Comptroller of the Comptroller of the Currency (OCC) Michael J. Hsu and Rohit Chopra his Director of the Consumer Financial Protection Bureau (CFPB).
“We are writing to seek information about the steps your agency is taking to stop the revolving door between financial regulators and the cryptocurrency (cryptocurrency) industry,” the lawmaker wrote. “The cryptocurrency sector has seen a rapid increase in lobbying activity in recent months as Congress and federal agencies work to create and enforce rules to regulate this multi-trillion dollar industry. We are spending millions of dollars to ensure favorable regulatory outcomes.”
As part of this influence campaign, crypto companies have hired hundreds of former government officials…and we believe the crypto revolving door will corrupt the policy-making process and undermine public trust in financial regulators. I am concerned that there is a risk.
“More than 200 government officials move between public service and cryptocurrency companies, serving as advisors, board members, investors, lobbyists, lawyers or internal executives, according to the Tech Transparency Project,” the letter said. is detailed.
Lawmakers added that at least 31 Treasury Department officials, 28 SEC officials, 15 CFTC officials, 6 Federal Reserve officials, 5 OCC officials, 3 CFPB officials, and 2 FDIC officials were included. rice field.
The letter continues:
These officials join at least eight former congressmen, 79 former congressional employees, and 32 former White House officials who are currently advising or lobbying for cryptocurrency interests.
“Americans should be confident that they are working for the people instead of auditioning for highly paid lobbying when regulators leave public service. The rapid turnover of the is undermining both obligations,” the lawmakers stressed.
Their letter concludes with a list of questions regarding each institution’s guidelines for preventing a revolving door with the cryptocurrency industry. For example, one question asks what ethics and transparency rules are in place to ensure the integrity of officials.Another question concerns how each institution unfairly protects its policies
Subject to potential conflicts of interest of current or former employees. Regulators were asked to provide responses by 7 November.
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