Regulation

US Congress sends 5 major crypto exchanges letter inquiring how they are combatting crypto fraud

5 outstanding cryptocurrency exchanges within the U.S. obtained letters from Congress requesting details about their steps to fight crypto fraud.

The inquiries are a part of the most recent push from Congress to deliver tighter regulation to the crypto business within the U.S., because the nation nonetheless struggles to find out which of its many regulatory businesses ought to oversee it.

Congress’ struggle in opposition to fraud and scams

Earlier this week, 4 federal businesses and 5 crypto exchanges within the U.S. obtained 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 data 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 data 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 data on how they’re defending customers within the area.

Rep. Krishnamoorthi is the Chair of the Subcommittee on Financial and Client 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 business and will result in extra involvement within the sector. Many imagine that the current collapse of Voyager and Celsius triggered Congress to focus extra on introducing stricter shopper safety measures to the business.

The U.S. cryptocurrency market remains to be largely unregulated, regardless of the nation having a number of federal businesses overseeing each a part of the monetary market.

Krishnamoorthi wrote within the letter to the SEC:

“Present federal rules don’t comprehensively or clearly cowl cryptocurrencies underneath all circumstances.”

He added:

“Debates proceed amongst U.S. authorities authorities as as to whether cryptocurrencies must be handled as securities, commodities, or each in varied circumstances. With out clear definitions and steering, businesses will proceed their infighting and will probably be unable successfully to implement shopper and investor protections associated to cryptocurrencies and the exchanges on which they’re traded.”

Posted In: U.S., Regulation

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