Senator Warren referenced the Tech Transparency Project to reveal that 200 government officials have left their positions in crypto firms.
Recently, the U.S. Securities and Exchange Commission (SEC) has been under fire from lawmakers about its digital asset market regulations. Now, it seems that the crypto industry is lobbying more than ever to try to change the SEC’s tune.
Fox Business journalist Eleanor Terrett reported that Senator Elizabeth Warren and Representative Alexandria Ocasio-Cortez wrote to Gary Gensler, SEC chair. They inquired about his actions taken to stop the revolving door issue between the agency and the crypto industry.
Elizabeth Warren mentioned in a letter that the key crypto players have increased their lobbying efforts and spent millions of dollars over the past few months in order to secure more favorable regulatory outcomes.
While some crypto firms have lobbyists to attempt to secure their interests, Congress and federal agencies are working on regulations they hope will safeguard the industry.
The Senator continued, saying that the agencies have knowledge of the revolving door in other sectors as well. His worry is that if the same pattern continues in cryptocurrency, it will lead to policymaking corruption and a lack of trust from industries regulated by those policies.
The Inspector General’s report suggests that the SEC staff lacks knowledge in making regulations for the market, and it is alleged that Gensler’s regime has triggered a mass exodus of this same expertise. Over 20% of the senior lawyers and officials have already quit the SEC.
200 government officials have moved between public and crypto firms, according to the Tech Transparency Project. These people are now serving as advisers, board members, investors, lobbyists or executives.
On this topic, Eleanor Terrett stated that the report demonstrates the lack of cohesion in understanding within the digital asset industry. The reportthen goes on to say that Coinbase, Ripple, and Stellar are some of the biggest players in said market; but also names Ripple as one of Coinbase’s chief competitors in regards to cryptocurrency exchange.