Prof. Richard Painter Testifies Before Congress About Ethics in Cryptocurrency Regulation

Professor Richard Painter, S. Walter Richey Professor of Corporate Law, testified yesterday before the Senate Banking Committee that was considering the CLARITY Act. The act would establish a regulatory framework for digital assets and provide jurisdictional lines for crypto between the Securities and Exchange Commission and the Commodity Futures Trading Commission. Prof. Painter focused his remarks on ethical issues around the president and members of Congress investing in crypto assets while also engaged in regulating the industry. He testified, “In most of the federal government financial conflicts of interest with official duties are a criminal offense. The conflict-of-interest statute imposes criminal penalties on anyone who participates personally and substantially as a government officer or employee in a particular matter in which he has a financial interest. This criminal statute applies to every executive branch officer or employee, except for two: the president and the vice president. It also does not apply to members of Congress.”