By Richard Hines
Two United States lawmakers and three congress members have asked regulators in the country to clarify the air on their members seeking employment in the crypto industry which they have previously interacted with.
Government Agencies Have Lost Over 200 Workers To The Crypto Industry
U.S sen. Elizabeth Warren, U.S rep, Alexandria Ocasio-Cortez and other signatories have written to multiple regulators about an issue they called ‘increasing number of revolving door hires.’ This problem stems from crypto regulators going back to get hired in an industry they previously regulated and there are instances where they then get back into regulation.
This seems to be an issue of concern for the lawmakers and in the letter, they asked each agency about information on measures they are taking to stop this ‘revolving door hires’ problem. They also expressed worry about this problem leading to escalated lobby efforts to seek favourable regulatory laws for the Industry.
The lawmakers noted that the problem is present in other industries like big tech, defense.The nascent crypto industry now imbibing this culture proves to create risks for the law and policy making process, also breaking public trust in these federal financial regulators.
Over 200 government agents from Securities and Exchange Commission officials, Commodity Futures Trading Commission officials, Federal Reserve officials, Office of the Comptroller of the Currency officials Consumer Financial Protection Bureau officials and Federal Deposit Insurance Corporation officials have transited between public service and crypto firms, the lawmakers noted.
Whitehouse Asks Congress To Hasten Crypto Regulation Process
Some weeks ago, Biden’s administration called on lawmakers to quickly settle the cryptocurrency regulation issue so investors would not be put at risk. The US Financial Stability Oversight Council (FSOC) published a report asking the politicians to agree on suitable policies to regulate the crypto spot market.
The FSOC’s report warned about risks posed by the largely unregulated sector advicing interagency cooperation to work on existing loopholes. The Whitehouse push for regulation comes after the collapse of the Terra ecosystem which reportedly sunk over $40 billion. Reports have it that congress is still months away from passing suitable legislation.