• A new bill titled Crypto Regulation, Protection, Transparency and Oversight (CRPTO) Act was proposed by New York Attorney General Letitia James.
• This landmark legislation would further extend the scope of regulatory authority over crypto firms and protect investors, consumers, and the broader economy.
• The CRPTO Act requires crypto firms to refund customers defrauded on their platform and forces crypto companies to undergo public and independent auditing.
New Bill Proposes Tighter Regulations on Cryptocurrency Industry
New York Attorney General Letitia James has proposed a new bill titled Crypto Regulation, Protection, Transparency and Oversight (CRPTO) Act that would further extend the scope of regulatory authority over crypto firms. This landmark legislation seeks to protect investors, consumers, and the broader economy from fraud in the cryptocurrency industry which has led to billions of dollars in losses for investors—especially low-income investors and people of color.
Fraud Protection Measures
The CRPTO Act requires crypto firms to refund customers defrauded on their platform as well as undergo public and independent auditing. Banks and other financial services are regulated; this legislation is an effort to ensure that the cryptocurrency industry is regulated as well.
Lawmakers Support New Legislation
Several New York lawmakers have thrown their weight behind the CRPTO Act including Assembly Speaker Carl Heastie who noted that “we must make sure our investments are safe from fraudsters” before discussing any other aspects of cryptocurrencies or blockchain technology. Governor Andrew Cuomo also issued a statement in support of the proposed bill which he said will help “protect all players in this growing market” while ensuring fairness across markets dealing with cryptocurrencies.
Industry Reaction
The cryptocurrency industry has responded positively to the news with some expressing interest in seeing what more can be done to protect consumers while still allowing innovation within this space. The industry looks forward to continuing work with lawmakers in order to ensure a prosperous future for all involved parties within this sector of finance.
Conclusion
The CRPTO Act provides much needed regulation for an otherwise largely unregulated space filled with potentials for abuse if left unchecked. By doing so it hopes to provide better protection for both individual investors as well as those looking at larger scale investments into cryptocurrency projects or businesses built around digital assets such as bitcoin or ethereum tokens .