The U.S. Securities and Exchange Commission (SEC) has been under scrutiny by lawmakers over its approach toward digital asset market regulations. However, US lawmakers now have alleged the crypto sector has increased its lobbying efforts in recent months.
Crypto leaders trying to frame laws
Eleanor Terrett, a Fox Business journalist reported that Senator Elizabeth Warren and Representative Alexandria Ocasio-Cortez wrote to Gary Gensler, SEC chair. They asked him to clarify his actions taken to stop the revolving door issue between the agency and the crypto industry.
Elizabeth Warren, in the letter, mentioned that the key crypto players have increased their lobbying efforts over the past few months. They have spent millions of dollars in order to secure favorable regulatory outcomes.
Congress and federal agencies are working to make and enforce regulations to safeguard the crypto industry. While many crypto firms have hired hundreds of former government officials to influence their campaigns.
It added that the agencies are aware of the revolving door in other sectors of the economy. The Senator is concerned that the same pattern in the crypto industry is risking corruption in the policymaking process. While it is also undermining the public’s trust in regulators.
Officials leaving govt offices for digital asset firms
Earlier, Coingape reported that Inspector General’s report suggested that the SEC staff lacks knowledge in making regulations for the market. It is alleged that Gensler’s regime has triggered a mass exodus of staff expertise. Over 20% of the senior lawyers and officials quit the SEC.
Senator Elizabeth Warren quoted the Tech Transparency Project to highlight that 200 government officials moved between public and crypto firms. Those officials are now serving as advisers, board members, investors, lobbyists, or executives.
Eleanor Terrett on this matter stated that the report underscores the fractured understanding of the digital asset industry. As the report refers to Coinbase, Ripple, and Stellar as the largest players in the industry. While it also mentions Ripple as the major competitor of Coinbase crypto exchange.