Crypto News: New York Attorney General Proposes Crypto Regulation Bill to Increase Oversight and Fraud Protection
New York State Attorney General Letitia James is planning to introduce the Crypto Regulation, Protection, Transparency, and Oversight (CRPTO) Act, which would require cryptocurrency companies to undergo audits, submit financial statements, and increase fraud protection.
The proposed bill also aims to tighten rules around custody and lending, increasing scrutiny on which companies can hold assets and facilitate leverage trading.
The CRPTO Act is part of New York’s ongoing efforts to establish itself as a pioneer in cryptocurrency policy. The state’s BitLicense policy, introduced in 2015, is seen as one of the more advanced cryptocurrency regulations in the US.
Other states, including Illinois and New Jersey, have expressed interest in similar regulations based on New York’s framework.
While some New York state regulators have taken a more crypto-friendly approach, the CRPTO Act highlights concerns over the stability of the cryptocurrency market and the need for greater regulation.
The bill also targets stablecoins, limiting companies from using the term unless assets are fully backed dollar-for-dollar.
Lawmakers across the country are divided over how to oversee the cryptocurrency industry, making it difficult to create a cohesive policy. The proposed CRPTO Act shows New York’s commitment to bringing order to the multi-billion-dollar industry, as rampant fraud and dysfunction have become the hallmarks of cryptocurrency.
In summary, New York’s proposed CRPTO Act seeks to bring law and order to the cryptocurrency industry. The bill includes measures to increase fraud protection, tighten rules around custody and lending, and limit companies from using the term “stablecoin” unless assets are fully backed dollar-for-dollar. New York’s ongoing efforts to establish itself as a pioneer in cryptocurrency policy are part of a broader trend of increased scrutiny and regulation of the cryptocurrency market.
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