U.S Lawmakers raised concern about revolving doors between financial regulators and crypto industry

“Over 200 government officials have moved between public service and crypto firm”
Five U.S lawmaker have sent letter to seven financial regulators asking about the measures they are taking to prevent the revolving door with crypto industry
Letter have also asked regulators how they are involved in regulating the crypto industry

Letters have been sent by five lawmakers to seven financial regulators due to the revolving Door between financial regulators.The financial regulators have been asked about the measures that they are taking to prevent the revolving door between their agencies and the crypto industry.

“Over 200 government officials have moved between public service and crypto firms,” the lawmaker said, also adding that they include 31 Treasury Department officials and 28 securities and exchange commission(SEC) officials.

The letter 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. Jesus G “Chuy” Garcia (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.

In the letter the individuals who have been asked how they are involved in regulating the crypto industry are barred from seeking employment in it. U.S have raised concern that the crypto firm may appoint former financial regulators and government officials and influence the decision of the government.

They Explained

“As part of this influence Campaign, crypto firms have hired hundreds of ex-government officials and we are concerned that the crypto revolving door risks corrupting the policymaking process and undermining the public trust in our financial regulators.

“ According to the Tech Transparency project, over 200 government officials have moved between public service and crypto firm, serving as advisers, board member , investors lobbyists, legal counsel or in-house executives,” the letter

The letter continues

“These officials join at least eight former members of congress,79 former congressional staffers, and 32 former White House Officials who are currently advising or lobbying for crypto interests.

The lawmaker also said that “Americans should be confident that regulators are working on behalf of the Public, rather than auditioning for a high-paid lobbying job upon leaving government service. The rapidly spinning revolving door out of government and into the crypto sector, however undermines both imperatives”

At the end the letter asked a list of questions asking the agencies about their guidelines for preventing the revolving door with the crypto industry.