US Lawmakers Probe SEC, Treasury, Federal Reserve Over Revolving Door With Crypto Industry

U.S. lawmakers person raised concerns astir the revolving doorway betwixt fiscal regulators and the crypto industry. “Over 200 authorities officials person moved betwixt nationalist work and crypto firms,” the lawmakers said, adding that they see 31 Treasury Department officials and 28 Securities and Exchange Commission (SEC) officials.

Revolving Door Between Financial Regulators, Like SEC, and Crypto Industry

Five U.S. lawmakers person sent a missive to 7 fiscal regulators inquiring astir measures they are taking to forestall the revolving doorway betwixt their agencies and the crypto industry. The letters, dated Oct. 24, were signed by Sen. Elizabeth Warren (D-MA), Sen. Sheldon Whitehouse (D-RI), Rep. Rashida Tlaib (D-MI), Rep. Alexandria Ocasio-Cortez (D-NY), and Rep. Jesús G. “Chuy” García (D-IL).

The letters were sent to Securities Exchange Commission (SEC) Chair Gary Gensler, Commodity Futures Trading Commission (CFTC) Chair Rostin Behnam, Treasury Secretary Janet Yellen, Federal Reserve Chair Jerome Powell, Federal Deposit Insurance Corporation (FDIC) Acting Chair Martin Gruenberg, Office of the Comptroller of the Currency (OCC)’s Acting Comptroller of the Currency Michael J. Hsu, and Consumer Financial Protection Bureau (CFPB) Director Rohit Chopra.

“We constitute seeking accusation astir the steps your bureau is taking to halt the revolving doorway betwixt our fiscal regulatory agencies and the cryptocurrency (crypto) industry,” the lawmakers wrote. “The crypto assemblage has rapidly escalated its lobbying efforts successful caller months, spending millions successful an effort to unafraid favorable regulatory outcomes arsenic Congress and national agencies enactment to trade and enforce rules to modulate this multi-trillion dollar industry.”

They explained:

As portion of this power campaign, crypto firms person hired hundreds of ex-government officials … and we are acrophobic that the crypto revolving doorway risks corrupting the policymaking process and undermining the public’s spot successful our fiscal regulators.

“According to the Tech Transparency Project, implicit 200 authorities officials person moved betwixt nationalist work and crypto firms, serving arsenic advisers, committee members, investors, lobbyists, ineligible counsel, oregon in-house executives,” the missive details.

The lawmakers added that they see astatine slightest 31 Treasury Department officials, 28 SEC officials, 15 CFTC officials, six Federal Reserve officials, 5 OCC officials, 3 CFPB officials, and 2 FDIC officials.

The missive continues:

These officials articulation astatine slightest 8 erstwhile members of Congress, 79 erstwhile legislature staffers, and 32 erstwhile White House officials who are presently advising oregon lobbying for crypto interests.

“Americans should beryllium assured that regulators are moving connected behalf of the public, alternatively than auditioning for a high-paid lobbying occupation upon leaving authorities service. The rapidly spinning revolving doorway retired of authorities and into the crypto sector, however, undermines some imperatives,” the lawmakers stressed.

Their letters reason with a database of questions concerning each agency’s guidelines to forestall a revolving doorway with the crypto industry. For example, 1 question asks astir what morals and transparency rules are successful spot to guarantee the integrity of bureau officials. Another question concerns however each bureau protects its policies from being unduly
influenced by existent oregon erstwhile employees’ imaginable conflicts of interest. The regulators were asked to supply answers by Nov. 7.

What bash you deliberation astir the revolving doorway betwixt fiscal regulators and the crypto industry? Let america cognize successful the comments conception below.

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