Cryptocurrency

US Congress sends 5 major crypto exchanges letter inquiring how they are combatting crypto fraud

Received by 5 prominent US cryptocurrency exchanges letter We are requesting information from Congress on measures to combat crypto fraud.

The investigation is part of the latest pressure from Congress to bring tighter regulation to the U.S. cryptocurrency industry, as many regulators are still struggling to decide which one should oversee it. .

Congress’ fight against fraud and fraud

Earlier this week, four US federal agencies and five cryptocurrency exchanges received letters from Congress. The letter, sent by Congressman Raja Krishnamoorthi, requests information on the measures taken by regulators and exchanges to combat cryptocurrency scams and scams.

Representatives have asked Coinbase, FTX, Binance.US, Kraken, and KuCoin to provide information and documents dating back to 2009. This shows how they identified and dealt with fraudulent cryptocurrencies and accounts on their platform.

Congress also requested that exchanges provide information on the tools and mechanisms they used to mitigate the risk of fraud. Both companies have until September 12th to submit his response, along with a proposal for actions the federal government should take to curb cryptocurrency fraud in this area.

The U.S. Treasury Department, the Securities and Exchange Commission (SEC), the Commodity Futures Trading Commission (CFTC), and the Federal Trade Commission have all asked for information on how they protect consumers in this area. was given.

Rep. Krishnamooti chairs the Subcommittee on Economic and Consumer Policy, part of the United States House of Representatives’ Main Committee of Inquiry. Committees are one of the most influential and powerful groups in the House, with jurisdiction over a wide range of public affairs and the power to enact new laws or change existing ones.

This is the Commission’s first opportunity to interact with the cryptocurrency industry and could lead to further engagement in this area. Many believe that the recent demise of Voyager and Celsius has caused Congress to focus more on introducing stricter consumer protection measures into the industry.

Despite multiple federal agencies overseeing all parts of the financial market, the U.S. cryptocurrency market remains largely unregulated.

In a letter to the SEC, Krishnamoorthi wrote:

โ€œExisting federal regulations do not comprehensively or explicitly cover cryptocurrencies under all circumstances.โ€

he added:

โ€œDebate continues among U.S. government officials over whether, in various circumstances, cryptocurrencies should be treated as securities, commodities, or both. , it will be unable to effectively enforce consumer and investor protections related to cryptocurrencies and the exchanges on which they are traded.โ€

Posted In: United States, Regulation

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