New York Attorney General Letitia James has proposed the Crypto Regulation, Protection, Transparency, and Oversight (CRPTO) Act, a new legislation aimed at strengthening cryptocurrency regulation in the United States. The bill seeks to enhance transparency, prevent conflicts of interest, and protect investors in the crypto industry.
Facts
- The proposed bill, the CRPTO Act, aims to increase transparency and protect investors in the cryptocurrency industry.
- To prevent conflicts of interest, the bill prohibits common ownership of crypto issuers, marketplaces, brokers, and investment advisers.
- All crypto companies will be required to undergo independent auditing and publish their audited financial statements to improve transparency.
- Strong know-your-customer (KYC) checks will be mandatory for crypto companies, and they will have to reimburse victims of crypto fraud.
- The legislation grants the New York Attorney General jurisdiction to enforce violations and impose civil penalties.
- Civil penalties will amount to $10,000 per violation per individual and $100,000 per violation per firm.
- The bill strengthens the regulatory authority of digital assets held by the New York State Department of Financial Services (DFS).
