Key Takeaways
- Former SEC chief takes up advisory role at crypto firm Fireblocks
- Jay Clayton to help Fireblocks address existing issues with its operations
- Clayton not the first former government official to take up major role in the crypto industry
According to Fireblocks, the former SEC chief will provide his experience in different aspects of the firm’s operations. He would help the company address market structure and customer-related regulations as well as other regulatory concerns.
Fireblocks is regarded as one of the top software security platforms and provides crypto custodian solutions for third-party companies. It also helps existing crypto firms speed up their operations and streamline crypto-asset transaction settlement.
Clayton is no stranger to such roles and currently serves as an advisor to Apollo Global Management. Fireblocks is valued at around $2 billion and recently raised more than $250 million in July's Series D funding round. The company also has high-profile companies, including BNY Mellon, Revolut, and other top exchanges as its clients.
In recent months, the fear of getting caught on the wrong side of regulations has engulfed the crypto industry. As a result, the leading crypto exchange Binance on Friday, August 20, 2021, announced that all users would be required to complete KYC requirements.
More exchanges are also expected to follow suit as they look to follow international AML and KYC laws. Thus, it is not unsurprising for former government officials to take up major roles in the blockchain industry.
Former CFTC chief Chris Giancarca is the adviser to cryptocurrency platform BlockFi. Binance briefly employed Brian Brooks, the former acting Comptroller of the Currency, as its US branch CEO.
Coinbase also employed Brett Redfearn, a former top US financial director. Unfortunately, Jay Clayton was not a huge fan of crypto-assets during his time as the head of the US SEC, and it will be interesting to see if he lasts long in his current role at Fireblocks.
What are your thoughts on the current trend of former government officials taking up crypto jobs?
