October 31, 2022

The U.S. is alarmed by the outflow of personnel from government agencies to the cryptocurrency segment

Last Monday, October 24, several members of Congress sent a collective letter to the SEC, the Fed, and the Treasury Department. In it, they expressed concern that former U.S. officials are moving into cryptocurrency in droves.

"We are writing to you seeking information on how your agency plans to stem the drain of personnel into the crypto segment," - the petition reads.

The authors also give specific examples in the letter. About 200 former officials have moved into the cryptocurrency segment over the years. They have taken positions as executives, lobbyists and consultants.

According to Elizabeth Warren, one of those who signed the appeal, this creates a dangerous situation. In her commentary, she compared what is happening to the way Wall Street has influenced the legal field in the past for its own benefit.

"The cryptocurrency firms are pursuing the same strategy. They're poaching former government employees to create a more acceptable regulatory environment for themselves,"  - the politician argued.

The signatories expect to hear back from regulators by Nov. 7. Notably, Warren is a longtime opponent of cryptocurrencies. Earlier in September, she accused Facebook of promoting digital assets.

As for employee leaks, a prime example is Binance.US hiring an ex-FBI agent. And there are many such examples, so the claims of members of Congress are not groundless.

Jack Evans

About the author

I became a crypto asset owner in 2014, when the industry was in its infancy. Before that, I was working in the classic US and European stock markets. Since then, I have gained extensive experience in both cryptocurrency investing and day trading. I am happy to share with readers my experience with crypto exchanges, DeFi and NFT instruments. 

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