In the United States, it is easy for civil servants to re-enter the private sector. Additionally, some audience profiles are highly sought after by companies. In recent years, there has been a significant number of officials from financial regulators, hired by cryptocurrency companies. Typically, these have lobbying roles on behalf of the cryptocurrency industry. This worries a group of American lawmakers, who have opened an investigation.
What are the regulatory bodies doing to prevent the phenomenon?
On October 24, a group of five American senators addressed letter to seven financial regulators. They are Elizabeth Warren, Sheldon Whitehouse, Rashida Tlaib, Alexandria Ocasio-Cortez and Jesús García. The recipients of the document are the SEC, the Treasury, the Fed, the CFTC, etc. In the letter, the leaders have request agency officials to explain what measures they have put in place to prevent former state officials from working in crypto businesses.
In recent years, more than 200 civil servants have switched from public service to cryptographic businesses. This, such as consultants, board members, investors, lobbyists, legal counsel or internal executives, reports the Tech Transparency Project. Additionally, there are already at least eight former Congressmen, 79 former Congressional staff members, and 32 former White House officials working for the cryptocurrency value chain.
“We are writing to inquire about the steps your agency is taking to end the shift between our financial regulatory agencies and the cryptocurrency industry. The industry has rapidly stepped up its lobbying efforts in recent months. It is spending millions. there to try to ensure favorable regulatory outcomes, while Congress and federal agencies work to draft regulations (…) As part of this influence campaign, cryptocurrency companies have hired hundreds of former government employees. We are concerned that this risks corrupting the decision-making process and undermining public confidence in our regulators “.
The senators want light up Americans on conflict of interest issues that could arise from these jurisdictional transfers. In addition, their letter contains many other questions, including on ethics and transparency. Regulators must answer questions by 7 November.
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Far from dulling my enthusiasm, a fruitless investment in a cryptocurrency in 2017 only increased my enthusiasm. I therefore decided to study and understand the blockchain and its multiple uses and to transmit information relating to this ecosystem with my pen.