‘Landmark’ Crypto Legislation Proposed in New York to Set up ‘Strongest and Most Complete’ Crypto Laws in USMay 8, 2023
New York State Legal professional Common Letitia James has proposed “landmark” crypto laws that claims to be “the strongest and most complete set of laws on cryptocurrency” in the US. “Rampant fraud and dysfunction have grow to be the hallmarks of cryptocurrency and it’s time to deliver legislation and order to the multi-billion-dollar trade,” stated Legal professional Common James.
NYAG Letitia James Launches ‘Landmark’ Crypto Laws
The New York State Legal professional Common (NYAG) Workplace introduced Friday that Legal professional Common Letitia James has proposed “landmark laws to tighten laws on the cryptocurrency trade to guard traders, shoppers, and the broader economic system.” The announcement states:
Legal professional Common James’ program invoice, which proposes the strongest and most complete set of laws on cryptocurrency within the nation, would improve transparency, remove conflicts of curiosity, and impose commonsense measures to guard traders, in step with laws imposed on different monetary companies.
The invoice, dubbed “Crypto Regulation, Safety, Transparency, and Oversight (CRPTO) Act,” would “require impartial public audits of cryptocurrency exchanges and stop people from proudly owning the identical corporations, comparable to brokerages and tokens, to cease conflicts of curiosity,” the announcement provides.
“Crypto platforms would even have obligations to prospects just like banks below the federal Digital Fund Switch Act by requiring platforms to reimburse prospects who’re the victims of fraud. The invoice would additionally strengthen the New York State Division of Monetary Companies’ (DFS) regulatory authority of digital belongings,” the NYAG Workplace detailed.
Furthermore, the announcement explains that the invoice would bolster investor protections by “enacting and codifying ‘know-your-customer’ [KYC] provisions” and “banning the usage of the time period ‘stablecoin’ to explain or market digital belongings except they’re backed 1:1 with U.S. forex or high-quality liquid belongings as outlined in federal laws.”
The NYAG Workplace continued:
The invoice would grant the Legal professional Common 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 agency, acquire restitution, damages, and penalties, and shut down companies partaking in fraud and illegality.
“The invoice would additionally codify DFS’ authority to license digital asset brokers, marketplaces, funding advisors, and issuers previous to partaking in enterprise in New York and permit DFS to supervise the digital asset licensing regime,” the announcement notes.
“Rampant fraud and dysfunction have grow to be the hallmarks of cryptocurrency and it’s time to deliver legislation and order to the multi-billion-dollar trade,” Legal professional Common James commented. “These commonsense laws will deliver extra transparency and oversight to the trade and strengthen our potential to crack down on people who don’t pay respect to the legislation.”
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