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New York State Attorney General Letitia James has proposed \u201clandmark\u201d crypto legislation that claims to be \u201cthe strongest and most comprehensive set of regulations on cryptocurrency\u201d in the United States. \u201cRampant fraud and dysfunction have become the hallmarks of cryptocurrency and it is time to bring law and order to the multi-billion-dollar industry,\u201d said Attorney General James.<\/strong><\/p>\n The New York State Attorney General (NYAG) Office announced Friday that Attorney General Letitia James has proposed \u201clandmark legislation to tighten regulations on the cryptocurrency industry to protect investors, consumers, and the broader economy.\u201d The announcement states:<\/p>\n Attorney General James\u2019 program bill, which proposes the strongest and most comprehensive set of regulations on cryptocurrency in the nation, would increase transparency, eliminate conflicts of interest, and impose commonsense measures to protect investors, consistent with regulations imposed on other financial services.<\/p>\n<\/blockquote>\n The bill, dubbed \u201cCrypto Regulation, Protection, Transparency, and Oversight (CRPTO) Act,\u201d would \u201crequire independent public audits of cryptocurrency exchanges and prevent individuals from owning the same companies, such as brokerages and tokens, to stop conflicts of interest,\u201d the announcement adds.<\/p>\n \u201cCrypto platforms would also have responsibilities to customers similar to banks under the federal Electronic Fund Transfer Act by requiring platforms to reimburse customers who are the victims of fraud. The bill would also strengthen the New York State Department of Financial Services\u2019 (DFS) regulatory authority of digital assets,\u201d the NYAG Office detailed.<\/p>\n Moreover, the announcement explains that the bill would bolster investor protections by \u201cenacting and codifying \u2018know-your-customer\u2019 [KYC] provisions\u201d and \u201cbanning the use of the term \u2018stablecoin\u2019 to describe or market digital assets unless they are backed 1:1 with U.S. currency or high-quality liquid assets as defined in federal regulations.\u201d<\/p>\n The NYAG Office continued:<\/p>\n The bill would grant the Attorney General jurisdiction to enforce any violation of the law, issue subpoenas, impose civil penalties of $10,000 per violation per individual or $100,000 per violation per firm, collect restitution, damages, and penalties, and shut down businesses engaging in fraud and illegality.<\/p>\n<\/blockquote>\n \u201cThe bill would also codify DFS\u2019 authority to license digital asset brokers, marketplaces, investment advisors, and issuers prior to engaging in business in New York and allow DFS to oversee the digital asset licensing regime,\u201d the announcement notes.<\/p>\n \u201cRampant fraud and dysfunction have become the hallmarks of cryptocurrency and it is time to bring law and order to the multi-billion-dollar industry,\u201d Attorney General James commented. \u201cThese commonsense regulations will bring more transparency and oversight to the industry and strengthen our ability to crack down on those that don\u2019t pay respect to the law.\u201d<\/p>\nNYAG Letitia James Launches \u2018Landmark\u2019 Crypto Legislation<\/h2>\n
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