March 29, 2024

Elizabeth Warren: It is necessary to clarify the legality of the work of ex-officials in crypto companies

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Elizabeth Warren: It is necessary to clarify the legality of the work of ex-officials in crypto companies

American senators, concerned about the growing influence of the crypto industry on the development of the law on digital assets, demanded clarification from regulators.

US Senator Elizabeth Warrenand Rep. Alexandria Ocasio-Cortez have asked regulators to clarify rules regarding former government employees holding positions in the crypto industry. 

The letter was addressed to the Securities CommissionSEC, 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, lawmakers noted “a growing numbercases of hiring government officials in crypto companies” and asked to clarify: how long are persons involved in regulating the crypto industry prohibited from seeking work from market participants.

Along with other signatories, Warren andOcasio-Cortez expresses concern that cryptocurrency companies are able to appoint former financial regulators and government officials to strengthen their lobbying position for cryptocurrency legislation:

“We are concerned that hiring former government officials into the crypto industry could distort decision-making and undermine public confidence in our financial regulators.”

In March, the chief strategist of the FederalReserve Bank of New York (FRBNY) became chief operating officer of the DeFi project Euler. In 2021, Finance Solidus Labs hired former US Consumer Financial Protection Bureau (CFPB) Director Kathy Kraninger. Binance recently hired a former Dubai Financial Services Authority (DFSA) employee  to establish relationships with local regulators.