Starting monitoring of Solidus Labs crypto trading said Thursday that it has hired the former head of the US Consumer Financial Protection Bureau (CFPB) to lead its regulatory team.
Kathy Kraninger, who was dirHead of CFPB from 2018 until her resignation in January, will oversee the regulatory strategy of Solidus Labs and build a global team to work with governments taking a closer look at digital asset markets and how to regulate them.
Solidus creates market monitoring tools to report manipulations in cryptocurrency trading platforms. This ability is seen as crucial in helping US regulators finally approve a cryptocurrency exchange-traded fund (ETF).
In an interview Thursday, Solidus CEO Asaf Meir declined to estimate when such an ETF could be approved. But he said that "the rails and the infrastructure [are] much more mature, and there are the right players in the market to usher in this kind of instrument in a safe way. I can't say if it will be in a year or two, but we are heading towards it.
Kraninger has stated that his experience at CFPB will likely prove useful in his new role.
"I have really spent a lot of time in the office thinking about innovation in FinTech and promoting this engagement between government and industry, So I'm very happy to continue this, "Kraninger told. " And I certainly have a lot of experience with how regulators think. "
Kraninger is the latest regulator in the Trump administration to join a cryptocurrency firm. Former banking regulator Brian Brooks was appointed CEO of Binance US in May, while Chris Giancarlo, the former head of the regulator American Derivatives, is an investor in Solidus and the founder of the Digital Dollar Project, which supports the development of a digital dollar.
Kraninger had previously held positions governments aboveOffice of Management and Budget, the Departments of Homeland Security and Transportation, as well as the US Senate and House of Representatives.
He was asked to step down when President Joe Biden took office.
In May, Solidus Labs announced that it had raised $ 20 million in a Series A investment round led by Evolution Equity Partners and which included Hanaco Ventures, who led the $ 3.75 from the startup in early 2019.
Other Series A investors included FTX and VC Avon Ventures, which is affiliated with Fidelity Investments. Several former regulators have also joined the cycle, including former Commodity Futures Trading Commission (CFTC) alumni Giancarlo and Daniel Gorfine, and former Securities and Exchange Commission (SEC) Clerk thoughoner Troy Paredes.
UPDATE (July 22, 16:38 UTC): This story has been updated to include quotes from Meir and Kraninger in the fourth and sixth paragraphs.