New York Legal professional Normal Letitia James has proposed a brand new set of state crypto rules that she says will improve transparency and improve investor protections within the digital asset sector.
James rolled out the brand new 30-page piece of potential laws in a press launch on Friday, arguing that it will symbolize “the strongest and most complete set of rules on cryptocurrency within the nation” if handed.
The invoice would implement public audit necessities for crypto exchanges and require them to publish itemizing requirements for crypto belongings.
The laws would additionally intention to cut back conflict-of-interest points within the crypto area by outlawing widespread possession of crypto issuers, marketplaces, brokers, and funding advisers. It could additionally ban crypto brokers and marketplaces from buying and selling for their very own accounts, and it will prohibit brokers from buying and selling buyer belongings.
The rules would additionally require crypto platforms to reimburse prospects who’re the victims of fraudulent or unauthorized transfers. They’d additionally ban using the phrase “stablecoin” to explain digital belongings that aren’t backed up on a 1:1 foundation by {dollars} or different high-quality liquid belongings.
Says James,
“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 business. New York buyers ought to have the peace of thoughts that there are safeguards in place to guard them and their cash. All investments are regulated to account for each penny of buyers’ cash — cryptocurrency ought to be no exception. These commonsense rules will deliver extra transparency and oversight to the business and strengthen our capability to crack down on those who don’t pay respect to the legislation.”
James says her workplace will submit the invoice to New York state lawmakers for consideration within the ongoing legislative session.
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