Five distinguished 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 most recent push from Congress to deliver 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’ struggle towards fraud and scams
Earlier this week, 4 federal companies and 5 crypto exchanges within the U.S. acquired letters from Congress. Sent 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 corporations 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. Department of Treasury, the Securities and Exchange Commission (SEC), the Commodity Futures Trading Commission (CFTC), and the Federal Trade Commission 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 Economic and Consumer Policy, a part of the primary investigative committee of the U.S. House of Representatives. The committee is among the House’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 present ones.
This is the committee’s first interplay with the crypto trade and will result in extra involvement within the sector. Many consider that the latest collapse of Voyager and Celsius triggered Congress to focus extra on introducing stricter shopper 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:
“Existing federal regulations do not comprehensively or clearly cover cryptocurrencies under all circumstances.”
“Debates continue among U.S. government authorities as to whether cryptocurrencies should be treated as securities, commodities, or both in various circumstances. Without clear definitions and guidance, agencies will continue their infighting and will be unable effectively to implement consumer and investor protections related to cryptocurrencies and the exchanges on which they are traded.”