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
  • 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.


Get the news in your inbox. Explore Blockworks newsletters:

Tags

Decoding crypto and the markets. Daily, with Byron Gilliam.

Upcoming Events

Javits Center North | 445 11th Ave

Tues - Thurs, March 24 - 26, 2026

Blockworks’ Digital Asset Summit (DAS) will feature conversations between the builders, allocators, and legislators who will shape the trajectory of the digital asset ecosystem in the US and abroad.

recent research

Monad SR Report Graphic.png

Research

Monad is a new Layer 1 blockchain designed as a high performance, EVM-compatible platform.

article-image

Engineers from MetaMask, Coinbase, Google, and the Ethereum Foundation make the case for onchain AI agents via ERC-8004

article-image

Legacy payments firm partners with Anchorage Digital to issue a dollar-pegged token under new US stablecoin law

by Blockworks /
article-image

As Solana ETFs launch but network REV trends lower, Jito sits at the intersection of new capital inflows and microstructure improvements

article-image

The Truth Social parent will integrate Crypto.com Derivatives North America, allowing users to trade prediction contracts under federal oversight

by Blockworks /
article-image

Partnership surpasses $2 billion in staked assets and adds support for new Proof-of-Stake networks

by Blockworks /
article-image

The tokenization leader will merge with Cantor Equity Partners II, becoming the first public firm focused on securities tokenization

by Blockworks /