The power of the crypto lobby: Politicians are sounding the alarm

Politicians, including US Senators Elizabeth Warren and Sheldon Whitehouse and Congresswoman Alexandria Ocasio-Cortez, are concerned about the increasing personal ties between the crypto industry and politics. one open letter According to this, companies “have greatly expanded their lobbying work in recent months”. At a time when the regulation of the crypto sector is under scrutiny.

As part of this “influencer campaign,” crypto companies have now recruited over 200 former government officials. Expenditure on lobbying has quadrupled over the past three years.

How powerful is the crypto lobby?

Appropriately concerned, it states, “We are concerned that the revolving door in the crypto economy could corrupt the policy-making process and erode public confidence in our financial regulators.”

By hiring government officials, the crypto industry gains legitimacy — an important tool “for an industry that designs many of its products to circumvent government scrutiny,” the politicians said. Just as “powerful Wall Street interests” influence financial regulation, the crypto industry is trying to help steer the regulatory course.

An arm’s length away

Financial regulators are being asked to “ensure the safety and fairness of our financial markets”. The rules in the financial market should “reduce risk, improve security and ensure the fair and efficient functioning of the market” – but not “simply meet the wishes of the crypto industry”, it says.

The letter is addressed to SEC Chairman Gary Gensler, Rostin Behnam, Chairman of the CFTC, US Treasury Secretary Janet Yellen and Fed President Jerome Powell, among others. They are to report by November 7 on the ethical guidelines of their authorities, such as the time intervals that must be observed when changing jobs between politics and business, and the methods used to avoid possible conflicts of interest.