New York Attorney General Demands More Power to Regulate the Crypto Sector
New York State Attorney General Letitia James has proposed a bill, the Cryptocurrency Regulation, Protection, Transparency, and Oversight Act (CRPTO), which would grant her office sweeping powers to regulate the cryptocurrency industry.
This bill, which is to be presented to the Senate and State Assembly in the 2023 legislative session, requires crypto exchanges to conduct an independent public audit and to provide redress to clients affected by fraud.
It also seeks to limit conflicts of interest and prohibits the use of the term “stablecoin” for assets that are not 1:1 pegged to the US dollar, as well as giving the State Department of Financial Services (NYDFS) the authority to license industry participants.
In addition, the NYDFS has already launched an investigation into Gemini, taken notice of Binance USD (BUSD) issuer Paxos and ordered the firm to stop issuing the stablecoin, and updated the tools for monitoring illegal activities with digital assets among regulated entities.
