Monday, June 17, 2024

Crypto shopper safety, proof of reserves payments launched into US Congress

by Jeremy

United States Congressman Ritchie Torres has launched payments within the Home of Representatives to ban misuse of buyer funds by cryptocurrency exchanges and to require exchanges disclose proof of reserves to the Securities and Trade Fee (SEC). The quick payments are meant to complement different laws that’s handed on cryptocurrency, Torres mentioned. 

Torres launched the payments, which have the titles of “Crypto Shopper Investor Safety Act’’ and “Crypto Trade Disclosure Act,’’ on Dec. 1. The payments are very quick. In copies obtained from Torres’ workplace, the physique of the primary invoice, launched as H.R. 9241, reads:

“A cryptocurrency alternate could not lend, leverage, or co-mingle the funds of a buyer with out the consent of such buyer.”

The second invoice, H.R. 9242, reads:

“A cryptocurrency alternate that holds belongings on behalf of shoppers shall periodically (as decided by the Securities and Trade Fee) open up to the Securities and Trade Fee info referring to proof of reserves of the alternate, together with, with respect to the alternate on the time of the disclosure, the quantity of belongings held by the alternate in comparison with the liabilities of the alternate.”

The payments have been referred to the Home Monetary Providers Committee.

“Crypto has a spot within the American economic system, however it should be rigorously regulated,” Torres mentioned at a press convention devoted to the payments. He has a report of assist for crypto, which incorporates authoring an editorial on the “liberal case” for crypto in a New York newspaper. On Dec. 5, he wrote a letter requesting a Authorities Accountability Workplace overview of “the SEC’s failure to guard the investing public from the egregious mismanagement and malfeasance of FTX.”

Associated: US lawmaker questions main crypto exchanges on shopper safety amid FTX collapse

There are a number of payments that Torres’ laws may be matched with, together with one drafted by Maxine Waters and Patrick Henry, at present the chair and rating member, respectively, of the Home Monetary Providers. Torres can be a member of that committee. In November, blockchain analytics firm Chainalysis compiled an inventory of 20 payments earlier than the U.S. Congress that would have an effect on cryptocurrency.