Solidus Labs, a New York-based crypto risk monitoring firm, announced on Tuesday that it has appointed Dawn Stump, a former commissioner of the U.S. Commodity Futures Trading Commission (CFTC), as the company’s strategic advisor.
Stump will offer advice and support the company’s regulatory engagement and policy development strategy in her role.
Solidus Labs was founded in 2018 by ex-engineers from Goldman Sachs. It offers compliance and regulatory risk services.
Stump has extensive experience in the regulation of financial services both domestically and internationally. Solidus Labs welcomes her with extensive knowledge in policy and capital markets. Stump previously served as the Commissioner of CFTC in the Obama and Trump administrations. She worked as a commissioner to help educate investors about crypto regulations.
Stump talked about her appointment: “I’m delighted to work with the Solidus Labs team, which shares my deep commitment to enabling the potential of crypto, DeFi Digital assets and the market integrity of investors by mitigating new risks. I look forward to advising the team and supporting Solidus’ combined focus on building tailored risk monitoring tools that address crypto’s unique market integrity challenges while also working with the industry and regulators to advance dialogue and innovative approaches to policy and regulation.”
Stump joins a number of former regulators who are advisors to Solidus Labs. These include former CFTC Chair J. Christopher Giancarlo and former SEC Commissioner Troy Paredes. Former Acting Comptroller for the Currency Brian Brooks. Former LabCFTC Director Daniel Gorfine. Clara Chiu was a former Hong Kong Securities and Futures Commission Innovation and Liensing leader.
Compliance – Increase Compliance
These appointments are made at a time when many crypto companies are trying to hire former regulators.
Jay Clayton, Donald Trump’s SEC Chair, joined Fireblocks’ $2 billion crypto platform in August 2017.
Ripple brought Mary Jo White (Bob Obama’s SEC chair) to defend Ripple from a lawsuit by her former agency in February 2013.
Last year, Binance onboarded a small army of former regulators — including former Senate Finance Committee chair Max Baucus and IRS criminal investigator Greg Monahan, among others in response to rapidly mounting regulatory concerns on the Exchange.
The digital assets industry is trying to insulate more people.
The rapid-paced digital asset industry has been luring bankers for many years and the influx of ex-regulators into crypto markets coincides.
Former regulators are trying to get into this new industry. They draw on their past experience to implement and enforce new rules in an ever-growing market where there is a lot of demand for regulation intervention.
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