According to The Wall Street Journal, senior SEC official Robert Cohen is parting ways with the US regulatory watchdog to work for Davis Polk & Wardwell, a New York-headquartered law firm.
Cohen led the SEC’s effort to crack down on messaging company Kik for launching an allegedly illegal ICO.
A revolving door
Prior to joining Davis Polk & Wardwell, Cohen had served 15 years as a government lawyer at the SEC. He dealt with multiple complicated cases and spearheaded the SEC’s cyber unit that specifically focuses on cryptocurrency-related threats, such as illegal fundraising, hacks, etc.
Private law firms gladly open their doors for former SEC officials. Cohen, who will start his new job in October, will reportedly represent those companies that face government investigation. To avoid a potential conflict of interest, he is prohibited from keeping in touch with SEC regulators for more than a year.
SEC vs. Kik
Cohen’s recent lawsuit against Kik Interactive, which held its $100 mln Kin token ICO back in 2017, turned into an uphill battle. On its website called Defend Crypto.org, the messaging company states that the SEC set a “dangerous precedent” that could stifle the growth within the Blockchain industry.
It is not just Kik that is impacted by the regulatory uncertainty. Many other projects are facing pressure behind the scenes, and many do not have the resources to fight and are being forced to simply fold and walk away.”