US senators, concerned about the growing influence of the crypto industry on the development of digital assets law, demanded clarification from regulators.
U.S. Senator Elizabeth Warren and Rep. Alexandria Ocasio-Cortez have asked regulators to clarify the rules regarding former civil servants holding positions in the crypto industry.
The letter was addressed to the Securities and Exchange Commission (SEC), the Commodity Futures Trading Commission (CFTC), the Treasury Department, the Federal Reserve System (FRS), the Federal Deposit Insurance Corporation (FDIC) and the Office of the Comptroller of the Currency (OCC).
In the letter, the legislators noted “a growing number of cases of hiring government officials in crypto companies” and asked for clarification: how long individuals involved in the regulation of the crypto industry are prohibited from seeking work from market participants.
Along with other signatories, Warren and Ocasio-Cortez express concern that crypto companies are able to appoint former financial regulators and government officials to strengthen their position in lobbying for crypto legislation:
“We are concerned that the hiring of former civil servants in the crypto industry could distort the decision-making process and undermine public confidence in our financial regulators.”
In March, the chief strategist at the Federal Reserve Bank of New York (FRBNY) became COO of DeFi project Euler. In 2021, Finance Solidus Labs hired former US Consumer Financial Protection Bureau (CFPB) director Kathy Kraninger. Binance recently hired a former employee of the Dubai Financial Supervisory Authority (DFSA) to build relationships with regulators there.
Source: Bits
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