Dan Berkovitz, the General Counsel of the Securities and Exchanges Commission (SEC), recently stepped down from his role at the agency, effective Jan. 31. During his time at the SEC, Berkovitz had meetings with FTX founder Sam Bankman-Fried and other crypto lobbyists, establishing himself as an ally of the crypto exchange platform. The announcement of his departure has raised questions about the potential implications of his prior interactions with the company.
After thirty-four years of public service, it is time for me to pursue new and different challenges and opportunities
Dan Berkovitz – General Counsel of the Securities and Exchanges Commission (SEC)
The recently revealed cozy relationship between Berkovitz and SBF and FTX, obtained by watchdog Protect the Public’s Trust, has left many feeling that D.C. is rigged in favor of corrupt insiders. Michael Chamberlain, director of Protect the Public’s Trust, commented that this scene “would be difficult to top” and it is clear that SBF and his associates were attempting to use their relationship with Berkovitz to manipulate the regulations to their own advantage. This conduct is unacceptable and should not be tolerated.
In October 2021, a high-stakes dinner took place between Bankman-Fried, FTX General Counsel Ryne Miller, FTX President Brett Harrison, and CFTC Chairman Gary Gensler’s Chief of Staff Joshua Berkovitz. It is uncertain what was discussed during the meeting, however, it highlights Bankman-Fried’s efforts to court D.C. lawmakers and regulators, as well as put forth his vision for crypto regulation. Bankman-Fried went as far as to present FTX as the “natural choice” to be the “umpires” of the crypto industry in emails to Berkovitz. This dinner was a testament to Bankman-Fried’s commitment to advocating for the crypto industry and appears to have been successful.