As regulatory oversight of cryptocurrency looms, Solidus Labs appointed earlier Consumer Protection Office Director Kathy Kraninger to lubricate the wheels.
Solidus Labs, which develops cryptocurrency market surveillance tools, appointed Kraninger, who led the CFPB from 2018 to 2021, as vice president of regulatory affairs to lead the company’s regulatory efforts.
Asaf Meir, CEO of Solidus Labs, praised Kathy’s “strong commitment to consumer protection” and her expertise in regulatory issues. He added that cryptocurrency is bringing immense changes to how financial markets work and how they are regulated.
“Crypto and decentralized finance – DeFi – are not only changing our understanding of financial markets and risks, they are also changing financial regulation,” said Meir. “Kathy is the right person to lead our strategy in response to demand from regulators, enforcement agencies and lawmakers for crypto-native risk monitoring solutions.”
While running CFPB, Kraninger gained a reputation for being far more business-friendly than her predecessor Richard Cordray. Enforcement measures broke in under their supervision, as did civil sanctions. The agency collected $ 1.9 billion on behalf of consumers from 2018 to 2020, compared to $ 5.6 billion in 2015 alone.
Kraninger said that decentralized finance and cryptocurrency are “really changing the way we get involved in the financial market”. She said Solidus hopes to be at the forefront of these changes.
“Solidus provides essential crypto-native risk monitoring and fraud prevention capabilities that meet the needs of responsible industry players and regulators and can help facilitate the next generation of markets.”
Kraninger’s appointment as a New York-based cryptocurrency startup comes as regulators around the world warn that they intend to rule cryptocurrency and stablecoins.
Last month that Bank of England raised concerns about stablecoins, a currency used to facilitate cryptocurrency transactions.
In a whitepaper, the central bank wrote: “The viability of its business models must not depend on looser regulation with equal risk – a form of ‘regulatory arbitrage’. And they must not rely on making promises that they cannot guarantee to be kept over time.
Treasury Secretary Janet Yellen described the cryptocurrency as “highly speculative” in an interview with CNBC in February and expressed concerns about the risks to investors.
“I think it is important to be careful that it is not used as a vehicle for investigative transactions and that there is investor protection,” Yellen said.
Earlier this week, Yellen called a meeting to “discuss the need to act quickly to ensure that an adequate US regulatory framework is in place”.
The group said it expected to publish recommendations “in the coming months”.
Editor’s note: Due to an editing error, an earlier version of this story stated that Kraninger was the acting director. She was confirmed as director in a party election at the end of 2018.