‘Landmark’ Crypto Law Proposed in New York to Establish ‘Strongest and Most Comprehensive’ Crypto Regulations in US – Regulation Bitcoin News
New York State Attorney General Letitia James has proposed “landmark” crypto legislation that she claims is “the strongest and most comprehensive set of cryptocurrency-related regulations” in the United States. “Fraud and rampant dysfunction have become hallmarks of cryptocurrency and it is time to bring law and order to the multi-billion dollar industry,” said Attorney General James.
NYAG Letitia James Launches ‘Landmark’ Crypto Code
The New York State Attorney General’s (NYAG) office announced Friday that Attorney General Letitia James has proposed “landmark legislation to tighten regulations around the cryptocurrency industry to protect investors, consumers, and the broader economy.” The advertisement states:
The Attorney General James Program Act, which proposes the strongest and most comprehensive set of cryptocurrency-related regulations in the country, will increase transparency, eliminate conflicts of interest, and enforce commonsense measures to protect investors, consistent with regulations imposed on other financial services.
The bill, called the Crypto Regulation, Protection, Transparency and Control Act (CRPTO), would “require independent public audits of cryptocurrency exchanges and ban individuals from owning the same companies, such as brokerages and tokens, to stop conflicts of interest,” the announcement adds.
Cryptocurrency platforms will also have responsibilities to customers similar to banks under the federal Electronic Funds Transfer Act by requiring the platforms to compensate customers who are victims of fraud. The bill would also strengthen the New York State Department of Financial Services (DFS) regulatory authority for digital assets,” the NYAG office explained.
Further, the announcement states that the bill would strengthen investor protections by “enacting and codifying Know Your Customer (KYC) provisions and “prohibiting the use of the term “stablecoin” to describe or market digital assets unless they are backed 1:1 in US currency or High-quality liquid assets as defined by federal regulations.”
Follow the NYAG office:
The bill would give the attorney general jurisdiction to enforce any violation of the law, issue subpoenas, impose civil penalties of $10,000 per violation per individual or $100,000 per violation per business, collect damages, damages, penalties, and shut down businesses involved in fraud and illegality.
“The bill would also classify DFS’s authority to license digital asset brokers, markets, investment advisors and issuers prior to engaging in business in New York and allow DFS to oversee the digital asset licensing regime,” the announcement notes.
Attorney General James commented, “Fraud and rampant dysfunction have become hallmarks of cryptocurrency and it is time to bring law and order to the multi-billion dollar industry.” “These commonsense regulations will bring more transparency and oversight to the industry and enhance our ability to crack down on those who do not pay respect for the law.”
What do you think of this “historic” encryption bill proposed by New York Attorney General Letitia James? Let us know in the comments section below.
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