Fireblocks Continues Crypto Hiring Spree of U.S. Regulators
Given the litany of cryptocurrency impacting legislation being discussed in Washington, an increasing number of U.S. regulators are being hired for consultancy and advisory jobs at cryptocurrency exchanges and companies. High-profile firms are recruiting and hiring former officials from agencies that were supposedly tasked with regulating and managing them, in order to gain a deeper understanding of the world of politics in the swamp.
The most recent example is former U.S. Securities and Exchange Commission (SEC) Chairman Jay Clayton joining crypto-asset custodian firm Fireblocks as a member of its Advisory Board. Fire blocks currently boast a client Rolodex of over 500 customers ranging from investment banks to lending desks. Clayton is set to help the firm navigate an evolving regulatory landscape and help create a foothold as a regulated and legal service provider. Clayton brings with him three decades of experience in international financial markets and is well versed in the regulatory dynamics of digital assets.
Speaking on this hire, CEO and Co-founder of Fireblocks Michael Shaulov was quoted saying, “Jay’s insights on financial stability and security in financial markets is unparalleled. Fireblocks will greatly benefit from having Jay on the advisory board given his expertise in many aspects of the financial sector. Jay will help to advance further the safety and security of the Fireblocks infrastructure for capital markets participants and investors”. In turn, Clayton said, “I share Fireblocks view that digital asset custody requires the same level of service as traditional custody”. During his tenure at the SEC, Clayton was among the first to consider the status of digital assets within securities’ frameworks as he was bullish on modernizing financial regulatory authorities.
Another noteworthy regulator-gone-crypto hire is Brett Redfearn, a former high-ranking director from the SEC who ran Coinbase Global’s capital-markets division for four months just as the company was going public. And not to be outdone, Binance recently hired the acting head of the Office of the Comptroller of the Currency under the Trump administration Brian Brooks as their new chief executive of Binance US as previously reported by Dchained.
These former public servants bring a robust knowledge of the legal and regulatory infrastructure in which their new employers must operate and will aid in creating frameworks to ensure both longevity and legality. All this is within an industry that is largely unformed and simultaneously in its inception and its prime. Considering the fact that the recent infrastructure bill that was just passed by Congress does not adequately differentiate between a broker and an exchange, it is clear that more cross-pollination is needed between regulators and industry specialists.
In order to gain more perspective on how Coinbase and Binance are moving in on Washington in order to propel the crypto world forward, check out this video below:
In the example of Ripple’s (XRP) recent lawsuit with the SEC, Ripple maintained that there was “significant regulatory uncertainty regarding when digital assets may be classified as securities by the SEC”. These cross-hires could ultimately be the key to developing a set of comprehensive legislation which meets the needs of the free market & regulators.
To learn more about the SEC lawsuit against Ripple and XRP’s potential as an asset, watch this video:
It seems that one thing is for sure, if you have worked a governmental regulatory job, your career path is pointing straight to the crypto world.