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Lawmakers Launch Inquiry Over Revolving Door Between Financial Regulators, Crypto Firms

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A group of Senate and House lawmakers wrote a letter to several financial regulatory agencies to seek information about the efforts of their institutions to stop the movement of officials between government agencies and the cryptocurrency industry.

According to the Tech Transparency Project, over 200 government officials have moved between public service and crypto firms, serving as advisers, board members, investors, lobbyists, legal counsel, or in-house executives,” the legislators wrote in the letter dated Monday.

The letter was addressed to the heads of the Securities and Exchange Commission, Commodity Futures Trading Commission, the Department of the Treasury, Federal Reserve, Federal Deposit Insurance Corporation, Office of the Comptroller of the Currency and the Consumer Financial Protection Bureau.

The lawmakers asked each financial regulator about their agency’s ethics guidelines and transparency rules to ensure the integrity of the rulemaking process and agency officials and challenges facing their organization when it comes to enforcing and strengthening ethics requirements around revolving door hires.

Regulators should submit their responses by Nov. 7.

The letter was signed by Sens. Elizabeth Warren, D-Mass., and Sheldon Whitehouse, D-R.I., and Reps. Alexandria Ocasio-Cortez, D-N.Y., Jesus “Chuy” Garcia, D-Ill., and Rashida Tlaib, D-Mich.