New York AG Proposes Landmark Crypto Law, Citing ‘Dysfunction’
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New York Attorney General Letitia James proposed a state law to tighten rules over cryptocurrency companies in her latest swing at an industry she claims is suffering from “rampant fraud and dysfunction.” From a report:
Under her proposal, New York would require independent public audits of crypto exchanges and bar people from owning both brokerages and tokens to prevent conflicts of interest. In a statement Friday, James called her proposal “the strongest and most comprehensive set of regulations on cryptocurrency in the nation.” The measures, which first need to be adopted by state lawmakers, also would require crypto platforms to reimburse customers who are victims of fraud and strengthen the authority of the New York State Department of Financial Services to regulate digital assets, according to the statement. “Millions of investors have lost hundreds of billions in the value of their cryptocurrency investments because of rampant fraud, including market manipulation, hacking, and opaque business practices,” James said. According to the attorney general, her proposal will be submitted to lawmakers for the 2023 legislative session.