Crypto’s ‘Revolving Door’ Hires Are Raising Eyebrows Among US Lawmakers

Five US lawmakers have signed a letter demanding information on ethics and transparency related to revolving door hires

article-image

Sen. Elizabeth Warren | Source: Shutterstock

share

key takeaways

  • Over 200 government officials have left their public service posts to move into senior positions at crypto startups, the lawmakers say
  • Many of these individuals later serve as “advisers, board members, investors, lobbyists, legal counsel, or in-house executives,” in the the crypto industry

A number of prominent US lawmakers say they’re increasingly concerned about the growing number of financial regulators taking crypto jobs. 

Sen. Elizabeth Warren, D-Mass., and Rep. Alexandria Ocasio-Cortez, D-N.Y., were among those who penned a slew of letters Oct. 24 to a number of US financial watchdogs.

“We write seeking information about the steps your agency is taking to stop the revolving door between our financial regulatory agencies and the cryptocurrency (crypto) industry,” they wrote. 

More than 200 government officials, per the lawmakers, have left public service jobs in favor of digital asset firms, where they’ve taken up senior positions including “advisers, board members, investors, lobbyists, legal counsel, or in-house executives.”

Added the letter: “Just as powerful Wall Street interests have long exercised their influence over financial regulation by hiring former officials with knowledge of government’s inner workings, crypto firms appear to be pursuing the same strategy in order to secure ‘a regulatory system to the industry’s exact specifications.’”

Other politicians who signed on include Sheldon Whitehouse, Jesús García and Rashida Tlaib. 

The lawmakers asked for information related to ethics and transparency on revolving door hires under a Nov. 7 deadline. 

“Our financial regulators are tasked with ensuring the safety and fairness of our financial markets,” the letter said. “The rapid rise of the crypto market has presented regulators with new questions about how these assets will be regulated.”

Warren has long been a critic of the cryptocurrency industry. Earlier in September, the senator, alongside other lawmakers, wrote a letter expressing their concern that Facebook was becoming a “breeding ground” for crypto fraud.


Start your day with top crypto insights from David Canellis and Katherine Ross. Subscribe to the Empire newsletter.

Explore the growing intersection between crypto, macroeconomics, policy and finance with Ben Strack, Casey Wagner and Felix Jauvin. Subscribe to the On the Margin newsletter.

The Lightspeed newsletter is all things Solana, in your inbox, every day. Subscribe to daily Solana news from Jack Kubinec and Jeff Albus.

Tags

Upcoming Events

Salt Lake City, UT

MON - TUES, OCT. 7 - 8, 2024

Blockworks and Bankless in collaboration with buidlbox are excited to announce the second installment of the Permissionless Hackathon – taking place October 7-8 in Salt Lake City, Utah. We’ve partnered with buidlbox to bring together the brightest minds in crypto for […]

Salt Lake City, UT

WED - FRI, OCTOBER 9 - 11, 2024

Pack your bags, anon — we’re heading west! Join us in the beautiful Salt Lake City for the third installment of Permissionless. Come for the alpha, stay for the fresh air. Permissionless III promises unforgettable panels, killer networking opportunities, and mountains […]

recent research

AERODROME TEMPLATE.png

Research

Aerodrome is a "MetaDEX" that combines elements of various DEX primitives such as Uniswap V2 and V3, Curve, Convex, and Votium. Since its launch on Base, it has become the largest protocol by TVL with more than $495M in value locked, doubling Uniswap's Base deployment.

article-image

Investors add to crypto positions after “turnaround in sentiment due to lower-than-expected CPI,” CoinShares research head says

article-image

Plus, Ethereum is in the midst of a vibecession

article-image

Also, former Valkyrie CEO lands new leadership role at Canadian investment firm Cypherpunk Holdings

article-image

This week’s biggest funding round saw Jump Trading, JPMorgan contribute to the round

article-image

Plus, a layer-1 for intellectual property is launching and Farcaster users peaked

article-image

Crypto still hasn’t shaken one of its most garish primordial tails — funny stories about fraud