New York Attorney General suggested empower its department with expanded powers to more effectively regulate the cryptocurrency market. The relevant bill, called the Regulation, Protection, Transparency, and Supervision of Cryptocurrencies (CRPTO), will be submitted to the New York State Senate and Assembly by June 8.
Today, my office is introducing nation-leading legislation to tighten regulations on the cryptocurrency industry.
We’re proposing commonsense measures to protect investors and end the fraud and dysfunction that have become the hallmarks of cryptocurrency.
— NY AG James (@NewYorkStateAG) May 5, 2023
In a tweet, Attorney General Letitia James explained that her initiative is needed to protect investors: “We offer reasonable measures to protect investors and stop fraud, which have become the hallmarks of cryptocurrency.”
The bill would give New York City officials enforcement powers to issue subpoenas, impose civil sanctions on crypto companies that violate state law, and shut down companies allegedly involved in fraud or illegal activity.
According to the CRPTO, exchanges will have to reimburse users who are victims of fraud. In addition, it is proposed to fix the term “stablecoin” so that it applies only to tokens that are backed by reserves in US dollars at a ratio of 1: 1, in the extreme case – “highly liquid assets”.
“For far too long, scams in the cryptocurrency industry have resulted in investors losing hundreds of billions, with low-income investors and racial minorities suffering the most. James said. — Banks and other financial services are regulated. The cryptocurrency industry should be like this too.”
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