Elizabeth Ann Warren, former law professor, questioned the regulators that how long a person is restricted from pursuing employment in a sector they have regulated, through a letter “Clarify Stance on Crypto Hires” with a request of a response by November 7.
On October 24, the letter concerning the issue stated :
“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,”
“We write seeking information about the steps your agency is taking to stop the revolving door between our financial regulatory agencies and the crypto industry,” the Massachusetts Senator clarified.
The Head of the agencies such as Securities and Exchange Commission(SEC), the Treasury Department, the Commodity Futures Trading Commission(CFTC), the Federal Deposit Insurance Commission, the Federal Reserve, the Consumer Financial Protection Bureau and the Office of the Comptroller of the Currency received this letter.
The group having Rep. Rashida Tlaib of Michigan, Rep. Jesús “Chuy” García of Illinois, and Sen. Sheldon Whitehouse of Rhode Island as its members wrote the letters, which include concerns about each agency’s ethics guidelines regarding former officials joining crypto businesses with ties to the department or agency they left.
Over 200 government employees joined crypto firms
In accordance with the team, Over 200 government employees have reportedly quit their jobs to work in some position in the digital asset sector particularly as advisers, board members, investors, lobbyists, legal counsel, or in-house executives. Recently, BinanceUS, the US arm of the world’s biggest crypto exchange, added BJ Kang, a former FBI agent, in the list, to lead its new investigation team.
Politicians like Senator Elizabeth, a frequent critic of the crypto industry who warned that DeFi is the most dangerous part of the cryptocurrency world, want to know how banking regulators will cut the number of staff who leave to work for companies in the cryptocurrency industry.