2 years ago
Five salient cryptocurrency exchanges successful the U.S. received letters from Congress requesting accusation astir their steps to combat crypto fraud.
The inquiries are portion of the latest propulsion from Congress to bring tighter regularisation to the crypto manufacture successful the U.S., arsenic the state inactive struggles to find which of its galore regulatory agencies should oversee it.
Congress’ combat against fraud and scams
Earlier this week, 4 national agencies and 5 crypto exchanges successful the U.S. received letters from Congress. Sent by Rep. Raja Krishnamoorthi, the letters petition accusation astir regulators’ and exchanges’ steps to combat cryptocurrency fraud and scams.
The typical asked Coinbase, FTX, Binance.US, Kraken, and KuCoin to supply accusation and documents dating backmost to 2009 that showed however they identified and tackled fraudulent cryptocurrencies and accounts connected their platforms.
Congress besides requested the exchanges supply accusation connected what tools and mechanisms they utilized to mitigate the hazard of fraud. The companies person until September 12 to taxable answers, alongside suggestions connected what actions the national authorities should instrumentality to curb crypto scams successful the space.
The U.S. Department of Treasury, the Securities and Exchange Commission (SEC), the Commodity Futures Trading Commission (CFTC), and the Federal Trade Commission were each asked to supply accusation connected however they’re protecting consumers successful the space.
Rep. Krishnamoorthi is the Chair of the Subcommittee connected Economic and Consumer Policy, portion of the main investigative committee of the U.S. House of Representatives. The committee is 1 of the House’s astir influential and almighty groups, arsenic it has jurisdiction implicit a wide array of nationalist matters and the powerfulness to marque caller laws oregon alteration existing ones.
This is the committee’s archetypal enactment with the crypto manufacture and could pb to much engagement successful the sector. Many judge that the caller illness of Voyager and Celsius triggered Congress to absorption much connected introducing stricter user extortion measures to the industry.
The U.S. cryptocurrency marketplace is inactive mostly unregulated, contempt the state having aggregate national agencies overseeing each portion of the fiscal market.
Krishnamoorthi wrote successful the missive to the SEC:
“Existing national regulations bash not comprehensively oregon intelligibly screen cryptocurrencies nether each circumstances.”
He added:
“Debates proceed among U.S. authorities authorities arsenic to whether cryptocurrencies should beryllium treated arsenic securities, commodities, oregon some successful assorted circumstances. Without wide definitions and guidance, agencies volition proceed their infighting and volition beryllium incapable efficaciously to instrumentality user and capitalist protections related to cryptocurrencies and the exchanges connected which they are traded.”
The station US Congress sends 5 large crypto exchanges missive inquiring however they are combatting crypto fraud appeared archetypal connected CryptoSlate.
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