US Lawmakers Ask Regulators About 'Revolving Door' With Crypto Industry
"Americans should believe that regulators work on behalf of the public, rather than auditioning for well-paid lobbying work", said five senators and members of the House.
New
Several Democratic members of the U.S. Senate and House of Representatives have requested information from key regulators and agencies around the country regarding crypto companies hiring departing officials.
In letters dated October 24 to the heads of the Securities and Exchange Commission, Commodity Futures Trading Commission, Treasury Department, Federal Reserve, Federal Deposit Insurance Corporation, Office of the Comptroller of the currency and the Consumer Financial Protection Bureau, five U.S. lawmakers have demanded a response regarding steps government departments and agencies are taking "to stop the revolving door" between them and the crypto industry.
Senators Elizabeth Warren and Sheldon Whitehouse and Representatives Alexandria Ocasio-Cortez, Jesús García and Rashida Tlaib cited reports claiming that "more than 200 government officials" - including lawmakers, staffers and the White House - had held positions as advisers, board members, investors, lobbyists, legal advisers and executives of crypto companies.
"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 we we are concerned that the crypto revolving door risks corrupting the policy-making process and undermining public confidence in our financial regulators,” the letter reads, adding:
“Just as powerful Wall Street interests have long wielded influence over financial regulation by hiring former officials with knowledge of the workings of government, crypto firms appear to be pursuing the same strategy in order to ensure” a regulatory system tailored exactly to industry ".specifications." Indeed, hiring former regulators and government officials gives the crypto industry a sense of legitimacy that is “vital currency for an industry that designs many of its products to circumvent regulatory scrutiny.”
The five sen...
"Americans should believe that regulators work on behalf of the public, rather than auditioning for well-paid lobbying work", said five senators and members of the House.
New
Several Democratic members of the U.S. Senate and House of Representatives have requested information from key regulators and agencies around the country regarding crypto companies hiring departing officials.
In letters dated October 24 to the heads of the Securities and Exchange Commission, Commodity Futures Trading Commission, Treasury Department, Federal Reserve, Federal Deposit Insurance Corporation, Office of the Comptroller of the currency and the Consumer Financial Protection Bureau, five U.S. lawmakers have demanded a response regarding steps government departments and agencies are taking "to stop the revolving door" between them and the crypto industry.
Senators Elizabeth Warren and Sheldon Whitehouse and Representatives Alexandria Ocasio-Cortez, Jesús García and Rashida Tlaib cited reports claiming that "more than 200 government officials" - including lawmakers, staffers and the White House - had held positions as advisers, board members, investors, lobbyists, legal advisers and executives of crypto companies.
"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 we we are concerned that the crypto revolving door risks corrupting the policy-making process and undermining public confidence in our financial regulators,” the letter reads, adding:
“Just as powerful Wall Street interests have long wielded influence over financial regulation by hiring former officials with knowledge of the workings of government, crypto firms appear to be pursuing the same strategy in order to ensure” a regulatory system tailored exactly to industry ".specifications." Indeed, hiring former regulators and government officials gives the crypto industry a sense of legitimacy that is “vital currency for an industry that designs many of its products to circumvent regulatory scrutiny.”
The five sen...
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