Several New York legislators are pushing for new New York state bills. Crypto Regulation, Protection, Transparency and Oversight (CRPTO) Act.
On May 5, New York Attorney General Letitia James unveiled a bill that would further expand the scope of regulatory authority over cryptocurrency companies.
What is CRPTO Law?
According to James, the landmark legislation will “strengthen regulation of the cryptocurrency industry to protect investors, consumers and the broader economy.”
regular chief murmured Her office suggests common sense measures to end fraud and dysfunction in the crypto space.
she I got it Fraud in the cryptocurrency industry has cost investors billions of dollars, with a greater impact on low-income investors and people of color.
“Banks and other financial services are regulated. So should the cryptocurrency industry,” she said.
The proposed law would require cryptocurrency companies to refund customers cheated on their platforms and would force cryptocurrency companies to undergo public and independent audits.
moreover, Specification It prevents crypto companies from lending and borrowing user assets, provides investors with all information about risks and conflicts of interest regarding crypto companies, and prevents crypto platform owners from creating crypto tokens.
Another key feature of the bill would expand the Attorney General’s authority to close businesses that violate the proposed law. The New York State Department of Financial Services will also get additional powers to regulate digital assets.
Under James, the New York Attorney General’s Office has filed several enforcement actions against cryptocurrency companies like KuCoin and individuals like bankrupt Celsius founder Alex Mashinsky.
Lawmakers throw weight behind bill
Meanwhile, the bill already has support from senators and legislators in several states.
New York Congress Deputy Leader Michael Solage said:
“As communities of color are increasingly drawn to investing in cryptocurrencies, it is imperative that common sense protections are put in place to prevent them from facing higher financial risks.”
State Senator Cordell Clear praised the New York Attorney General for the bill. Claire added:
“All financial instruments and instruments must be honest, transparent and fail-safe. This is doubled in emerging industries.”
New York lawmakers may be more open to passing the bill, given that the same legislature passed a two-year moratorium on bitcoin (BTC) mining activity in the state.
On the other hand, some believe lawmakers may not pass the bill. Andrew Hinkes, Partner at K&L Gates Law Firm, said: Said The bill would fail “because it relies on certain assumptions about cryptocurrencies that are not true.”
