New York Legal professional Basic Letitia James has proposed a brand new set of state crypto laws 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 legislation in a press release on Friday, arguing that it could characterize “the strongest and most complete set of laws 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 property.
The laws would additionally intention to scale back conflict-of-interest points within the crypto house by outlawing frequent 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 could prohibit brokers from buying and selling buyer property.
The laws would additionally require crypto platforms to reimburse clients who’re the victims of fraudulent or unauthorized transfers. They’d additionally ban using the phrase “stablecoin” to explain digital property that aren’t backed up on a 1:1 foundation by {dollars} or different high-quality liquid property.
Says James,
“Rampant fraud and dysfunction have develop into the hallmarks of cryptocurrency and it’s time to convey legislation and order to the multi-billion-dollar trade. 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 needs to be no exception. These commonsense laws will convey extra transparency and oversight to the trade and strengthen our means 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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