{"id":578862,"date":"2022-10-25T23:02:43","date_gmt":"2022-10-25T22:02:43","guid":{"rendered":"https:\/\/en.ethereumworldnews.com\/?p=578862"},"modified":"2022-10-25T23:05:27","modified_gmt":"2022-10-25T22:05:27","slug":"u-s-lawmakers-write-to-sec-cftc-about-revolving-door-with-crypto-industry","status":"publish","type":"post","link":"https:\/\/en.ethereumworldnews.com\/u-s-lawmakers-write-to-sec-cftc-about-revolving-door-with-crypto-industry\/","title":{"rendered":"Sen. Warren Addresses Gary Gensler About Ex Gov. Officials Employed Within Crypto Companies"},"content":{"rendered":"\n<ul><li>Lawmakers including Sen. Elizabeth Warren and Rep. Alexandria Ocasio-Cortez are seeking information on the revolving door between regulatory agencies and crypto firms.\u00a0<\/li><li>The lawmakers are taking cognizance of the rising expenditure on lobbying efforts by crypto firms, where as part of an influence campaign crypto firms have hired ex-government officials.<\/li><li>Recipients of the letter include the SEC, CFTC, and the Department of Treasury.\u00a0<\/li><li>The lawmakers are concerned about the conflict of interest arising from the prospect of employment at crypto firms.\u00a0<\/li><\/ul>\n\n\n\n<p>A group of concerned U.S lawmakers has penned a letter to several of the country\u2019s financial regulatory agencies, seeking information on the \u201crevolving door\u201d between the agencies and the crypto industry.&nbsp;<\/p>\n\n\n\n<p>The&nbsp;<a href=\"https:\/\/www.warren.senate.gov\/imo\/media\/doc\/10.24%20Letters%20to%20Regulators%20re%20Crypto%20Revolving%20Door.pdf\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">letter<\/a>, signed by Sen. Elizabeth Warren, Sen. Sheldon Whitehouse, Rep. Alexandria Ocasio-Cortez, Rep. Jes\u00fas G. &#8220;Chuy&#8221; Garc\u00eda, and Rep. Rashida Tlaib, has pointed out the millions of dollars invested by crypto firms into lobbying efforts in a bid to secure favorable legislation and regulations.<\/p>\n\n\n\n<blockquote class=\"wp-block-quote\"><p>\u201cWe are concerned that the crypto revolving door risks corrupting the policymaking process and undermining the public\u2019s trust in our financial regulators.\u201d the letter read.\u00a0<\/p><\/blockquote>\n\n\n\n<h2><strong>Info demanded from SEC, CFTC, etc.<\/strong><\/h2>\n\n\n\n<p>The Securities and Exchange Commission (SEC), the Commodity Futures Trading Commission (CFTC), the Department of Treasury, the Federal Reserve, the Federal Deposit Insurance Corporation (FDIC), the Office of the Comptroller of the Currency (OCC), and the Consumer Financial Protection Bureau (CFPB), have all been asked to brief the lawmakers regarding this situation.&nbsp;<\/p>\n\n\n\n<p>The senators and representatives cited a&nbsp;<a href=\"https:\/\/www.techtransparencyproject.org\/sites\/default\/files\/Crypto-Revolving-Door-Report.pdf\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">report<\/a>&nbsp;by Tech Transparency Project while bringing the agencies\u2019 attention to the 200 plus federal government employees who have taken up roles at various crypto firms.&nbsp;<\/p>\n\n\n\n<p>High-profile names that have left the government and joined crypto firms include former CFTC chair Christopher Giancarlo, former OCC chief Brian Brooks, and former CFPB director Mick Mulvaney.&nbsp;<\/p>\n\n\n\n<p>The lawmakers also expressed their concerns over the increasing spending on lobbying efforts by crypto firms. Public Citizen published a&nbsp;<a href=\"https:\/\/www.citizen.org\/article\/capitol-coin-cryptocurrency-lobbying-revolving-door-report\/\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">report<\/a>&nbsp;earlier this year which showed that expenditure on crypto lobbying had quadrupled since 2018.<\/p>\n\n\n\n<p>The letter has directed the agencies to explain the steps that are being taken to limit the conflict of interest when it comes to the framing of policies, among other questions. the agencies have also been asked to clarify the time period for which persons involved with regulators are barred from serving the crypto industry, and vice-versa.  Additionally, the lawmakers want to know about the transparency and ethics rules that ensure the integrity of the rulemaking process.&nbsp;<\/p>\n\n\n\n<p>Hiring government employees with a regulatory background is beneficial for companies operating in the crypto space, given the recent regulatory&nbsp;<a target=\"_blank\" href=\"https:\/\/en.ethereumworldnews.com\/binance-us-exchanges-investigated-sec\/\" rel=\"noreferrer noopener\">crackdown<\/a>&nbsp;that the industry has faced from agencies like the SEC.&nbsp;<\/p>\n\n\n\n<p>Binance is among the crypto firms that have been in the news this year for hiring former federal government employees. These hires include former Financial Industry Regulatory Authority (FINRA) Director&nbsp;<a target=\"_blank\" href=\"https:\/\/www.binance.com\/en\/blog\/leadership\/former-finra-regulator-seth-levy-joins-binance-as-head-of-market-surveillance-421499824684903735\" rel=\"noreferrer noopener nofollow\">Seth Levy<\/a>, former FBI Special Agent&nbsp;<a target=\"_blank\" href=\"https:\/\/blog.binance.us\/former-fbi-joins-binance-us\/\" rel=\"noreferrer noopener nofollow\">BJ Kang<\/a>, and Former IRS Special Agent&nbsp;<a target=\"_blank\" href=\"https:\/\/www.binance.com\/en-IN\/blog\/leadership\/former-irsci-special-agent-matthew-price-joins-binance-as-senior-director-of-investigations-421499824684902818\" rel=\"noreferrer noopener nofollow\">Matthew Price<\/a>.&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>U.S lawmakers have written to regulatory agencies including the SEC regarding their policy on employees being hired by crypto firms.<\/p>\n","protected":false},"author":62,"featured_media":578864,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[17,22,2],"tags":[1119,1117,108692,108515],"_links":{"self":[{"href":"https:\/\/en.ethereumworldnews.com\/wp-json\/wp\/v2\/posts\/578862"}],"collection":[{"href":"https:\/\/en.ethereumworldnews.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/en.ethereumworldnews.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/en.ethereumworldnews.com\/wp-json\/wp\/v2\/users\/62"}],"replies":[{"embeddable":true,"href":"https:\/\/en.ethereumworldnews.com\/wp-json\/wp\/v2\/comments?post=578862"}],"version-history":[{"count":4,"href":"https:\/\/en.ethereumworldnews.com\/wp-json\/wp\/v2\/posts\/578862\/revisions"}],"predecessor-version":[{"id":578870,"href":"https:\/\/en.ethereumworldnews.com\/wp-json\/wp\/v2\/posts\/578862\/revisions\/578870"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/en.ethereumworldnews.com\/wp-json\/wp\/v2\/media\/578864"}],"wp:attachment":[{"href":"https:\/\/en.ethereumworldnews.com\/wp-json\/wp\/v2\/media?parent=578862"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/en.ethereumworldnews.com\/wp-json\/wp\/v2\/categories?post=578862"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/en.ethereumworldnews.com\/wp-json\/wp\/v2\/tags?post=578862"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}