Legislators have questioned the Securities and Exchange Commission (SEC) of the United States about how it approaches regulating the digital asset market. However, US politicians now claim that the cryptocurrency industry has upped its lobbying in recent months.
Legislators have questioned the Securities and Exchange Commission (SEC) of the United States about how it approaches regulating the digital asset market. However, US politicians now claim that the cryptocurrency industry has upped its lobbying in recent months.
Crypto leaders are attempting to draught laws
According to Eleanor Terrett of Fox Business, the SEC chair Gary Gensler received letters from Senator Elizabeth Warren and Representative Alexandria Ocasio-Cortez. They questioned him on the steps he took to resolve the agency and cryptocurrency industry "revolving door" issue.
In the letter, Elizabeth Warren noted that the major cryptocurrency companies had stepped up their lobbying over the previous few months. Millions of dollars have been spent by them to ensure successful regulatory outcomes.
To protect the cryptocurrency business, Congress and government agencies are attempting to create and enforce regulations. Hundreds of former government officials have been employed by various cryptocurrency companies to influence their campaigns.
The agencies are aware of the revolving door in other economic areas, it was added. The senator is worried that the similar behaviour in the cryptocurrency sector poses a possibility of corruption in the process of deciding on public policy. Additionally, it erodes the public's confidence in regulators.
Earlier, CoinGabbar stated that the Inspector General's findings revealed the SEC staff lacked expertise in creating market laws. It is claimed that Gensler's administration has caused a widespread outflow of skilled personnel. Senior lawyers and officials left the SEC in greater than 20% of cases.
In order to highlight the fact that 200 government personnel switched between public and cryptocurrency enterprises, Senator Elizabeth Warren cited the Tech Transparency Project. These former officials are now working as CEOs, investors, board members, advisers, or lobbyists.
According to Eleanor Terrett, the paper highlights the lack of a comprehensive grasp of the digital asset market. As the three biggest companies in the market, according to the survey, are Coinbase, Ripple, and Stellar. Ripple is often mentioned as a key rival of the Coinbase cryptocurrency exchange.
