New York Lawyer Normal Letitia James has proposed “landmark” crypto laws that claims to be “the strongest and most complete cryptocurrency regulation” in the US. “Speedy fraud and dysfunction have turn into the hallmarks of cryptocurrency, and it is time to convey legislation and order to the multi-billion greenback business,” stated Lawyer Normal James.
NYAG Letitia James Launches ‘Landmark’ Crypto Laws
The New York State Lawyer Normal (NYAG) Workplace introduced Friday that Lawyer Normal Letitia James has proposed “landmark laws to tighten rules on the cryptocurrency business to guard buyers, shoppers and the broader financial system.” The announcement states:
Lawyer Normal James’ program proposal, which proposes the strongest and most complete cryptocurrency regulation within the nation, would improve transparency, remove conflicts of curiosity and impose sound measures to guard buyers, in keeping with rules imposed on different monetary companies.
The invoice, known as the “Crypto Regulation, Safety, Transparency, and Oversight (CRPTO) Act,” would “require unbiased public audits of cryptocurrency exchanges and stop people from proudly owning the identical firms, akin to brokerages and tokens, to cease conflicts of curiosity,” it provides the announcement of.
“Crypto platforms would even have tasks to prospects much like banks below the federal Digital Switch Act by requiring platforms to reimburse prospects uncovered to fraud. The invoice would additionally strengthen the New York State Division of Monetary Companies (DFS) regulatory authority for digital property, ” the NYAG workplace stated intimately.
Additional, the announcement explains that the invoice would strengthen investor protections by “enacting and codifying ‘know-your-customer’ [KYC] provisions” and “prohibits using the time period ‘stablecoin’ to explain or market digital property except they’re backed 1:1 with US foreign money or high-quality liquid property as outlined in federal rules.”
The NYAG workplace continued:
The invoice would give the legal professional normal jurisdiction to implement any violation of the legislation, concern subpoenas, impose civil penalties of $10,000 per violation per particular person or $100,000 per violation per company, acquire restitution, damages and penalties, and shut down companies that interact in fraud. and illegality.
“The invoice would additionally codify DFS’s authority to license digital asset brokers, marketplaces, funding advisers and issuers earlier than they interact in enterprise in New York and permit DFS to supervise the digital asset licensing regime,” the announcement notes.
“Speedy fraud and dysfunction have turn into the hallmarks of cryptocurrency, and it is time to convey legislation and order to the multi-billion greenback business,” commented Lawyer Normal James. “These widespread sense rules will convey extra transparency and oversight to the business and strengthen our skill to crack down on those that don’t respect the legislation.”
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