SEC Chairman Gary Gensler Received Letter from US Parliament, Check Contents Here!

SEC chairman Gary Gensler received a letter from US lawmakers. (Photo; Doc. Investopedia)

JAKARTA – Several US lawmakers have written to financial regulators that regulate the crypto industry. The letter was sent to relevant parties including the chairman of the US Securities and Exchange Commission (SEC) Gary Gansler, chairman of the Commodity Futures Trading Commission (CFTC) Rostin Behnam, and similar agencies. Finance Minister Janet Yellen and Fed Chair Jerome Powell also received the letter.

In the letter, US lawmakers voiced their concerns regarding the entry and exit of parties between financial regulators and the crypto industry. “More than 200 government officials have moved between public services and crypto companies", the lawmaker said, adding that they included 31 Treasury Department officials and 28 Securities and Exchange Commission (SEC) officials.

Five US lawmakers have sent letters to seven financial regulators asking about steps they are taking to prevent a “revolving door" between their agencies and the crypto industry. The letters, dated October 24, were signed by Senator Elizabeth Warren (D-MA), Senator Sheldon Whitehouse (D-RI), Rep. Rashida Tlaib (D-MI), Rep. Alexandria Ocasio-Cortez (D-NY), and Rep. Jesús G. "Chuy" García (D-IL).

The letters were sent to Securities Exchange Commission (SEC) Chair Gary Gensler, Commodity Futures Trading Commission (CFTC) Chair Rostin Behnam, Treasury Secretary Janet Yellen, Federal Reserve Chair Jerome Powell, Acting Federal Deposit Insurance Corporation (FDIC) Chair Martin Gruenberg, Acting Currency Controller of the Office of the Currency Supervisor (OCC) Michael J. Hsu, and Director of the Consumer Financial Protection Bureau (CFPB) Rohit Chopra.

“We are writing seeking information about the steps your agency is taking to stop the revolving door of our financial regulatory agency and the cryptocurrency (crypto) industry", the lawmaker wrote, according to Bitcoin.com News.

“The crypto sector has rapidly stepped up lobbying efforts in recent months, spending millions of dollars to secure favorable regulatory outcomes as Congress and federal agencies work to create and enforce rules to govern this multi-trillion dollar industry", the statement added.

Furthermore, the letter from the US parliament also reveals the entry of hundreds of former government officials into the crypto industry. They are “worried that this could undermine the policy-making process and undermine public confidence in our financial regulators."

“According to the Technology Transparency Project, more than 200 government officials have moved between public services and crypto companies, serving as advisors, board members, investors, lobbyists, legal counsel, or internal executives", the letter details.

The lawmakers added that they include at least 31 Treasury officials, 28 SEC officials, 15 CFTC officials, six Federal Reserve officials, five OCC officials, three CFPB officials, and two FDIC officials.

"These officials join at least eight former members of Congress, 79 former congressional staffers, and 32 former White House officials currently advising or lobbying for crypto interests", the letter added.

Hence, lawmakers urged US citizens to believe that regulators work for society. They also questioned the clarity of the guidelines of each of the institutions mentioned above to prevent their employees from entering the crypto industry. Therefore, US regulators are required to submit an answer no later than November 7th.