The New York State Attorney General, Letitia James, wants to pass a new law about cryptocurrency. This law is meant to be the strongest and most complete regulation for crypto in the US. She explained that lots of fraud and bad things happened with this kind of currency, so it’s time to bring some order and control.
“Introducing the CRPTO Act – Protecting Cryptocurrency Investors in New York”
The New York Attorney General’s (NYAG) Office announced on Friday that the Attorney General, Letitia James, is suggesting new laws to help keep cryptocurrency safe for people who invest in it. This will protect ordinary people and make sure our economy stays strong.
Attorney General James has proposed a bill which, if passed, would make the laws on cryptocurrency (which people use online to buy things) stronger and more clear than any other state in the country. This would help protect investors by making sure there are no conflicts of interest and everyone follows the same rules as other types of financial services.
The CRPTO Act is a bill that would make audits of cryptocurrency exchanges compulsory. It also prohibits people from owning both brokerages and tokens, so there are no conflicts of interest.
The government wants crypto platforms to act like banks, which means if someone commits fraud against a customer, then the platform will have to give them their money back. Also, the New York State Department of Financial Services will oversee cryptocurrency in order to protect customers from any bad behaviour.
This bill is trying to ensure that investors are protected. To do this, it will make sure people know who they’re investing with (called ‘know-your-customer’) and also ban people from using the words ‘stablecoin’ unless it’s backed one to one with US money or something valuable as defined by other laws. The New York Attorney General’s office said this too.
The bill states that the Attorney General has the authority to punish anyone who breaks the law by issuing subpoenas, charging fines of up to $10,000 for each person or $100,000 for each business that does something wrong, giving back lost money and other costs, and if necessary shutting down companies engaging in fraud or unlawful activities.
The bill would give the Department of Financial Services (DFS) the power to issue licenses to companies that deal with digital assets such as brokers, marketplaces, investment advisors, and issuers before they are allowed to operate in New York. The DFS will also be responsible for managing all the digital asset licensing rules.
Attorney General James said that it is time to put laws in place for cryptocurrency. He believes this will make the multi-billion dollar industry better because people who break the law can be caught more easily and all transactions will be tracked.
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