5 outstanding cryptocurrency exchanges within the U.S. acquired letters from Congress requesting details about their steps to fight crypto fraud.
The inquiries are a part of the newest push from Congress to convey tighter regulation to the crypto trade within the U.S., because the nation nonetheless struggles to find out which of its many regulatory companies ought to oversee it.
Congress’ combat in opposition to fraud and scams
Earlier this week, 4 federal companies and 5 crypto exchanges within the U.S. acquired letters from Congress. Despatched by Rep. Raja Krishnamoorthi, the letters request details about regulators’ and exchanges’ steps to fight cryptocurrency fraud and scams.
The consultant requested Coinbase, FTX, Binance.US, Kraken, and KuCoin to supply info and paperwork courting again to 2009 that confirmed how they recognized and tackled fraudulent cryptocurrencies and accounts on their platforms.
Congress additionally requested the exchanges present info on what instruments and mechanisms they used to mitigate the chance of fraud. The businesses have till September 12 to submit solutions, alongside solutions on what actions the federal authorities ought to take to curb crypto scams within the area.
The U.S. Division of Treasury, the Securities and Trade Fee (SEC), the Commodity Futures Buying and selling Fee (CFTC), and the Federal Commerce Fee had been all requested to supply info on how they’re defending shoppers within the area.
Rep. Krishnamoorthi is the Chair of the Subcommittee on Financial and Shopper Coverage, a part of the primary investigative committee of the U.S. Home of Representatives. The committee is likely one of the Home’s most influential and highly effective teams, because it has jurisdiction over a broad array of public issues and the ability to make new legal guidelines or change current ones.
That is the committee’s first interplay with the crypto trade and will result in extra involvement within the sector. Many imagine that the latest collapse of Voyager and Celsius triggered Congress to focus extra on introducing stricter client safety measures to the trade.
The U.S. cryptocurrency market continues to be largely unregulated, regardless of the nation having a number of federal companies overseeing each a part of the monetary market.
Krishnamoorthi wrote within the letter to the SEC:
“Current federal rules don’t comprehensively or clearly cowl cryptocurrencies beneath all circumstances.”
“Debates proceed amongst U.S. authorities authorities as as to if cryptocurrencies ought to be handled as securities, commodities, or each in varied circumstances. With out clear definitions and steerage, companies will proceed their infighting and shall be unable successfully to implement client and investor protections associated to cryptocurrencies and the exchanges on which they’re traded.”