New York Attorney General Letitia James has proposed a new set of state crypto regulations that she says will increase transparency and improve investor protection in the digital asset sector.
James rolled out the new 30-page piece of potential legislation in a press release on Friday, arguing that it would represent “the strongest and most comprehensive set of cryptocurrency regulations in the nation” if passed.
The bill would implement public audit requirements for crypto exchanges and require them to publish crypto asset listing standards.
The legislation would also aim to reduce conflicts of interest in the crypto space by banning common ownership of crypto issuers, marketplaces, brokers and investment advisors. It would also prohibit crypto brokers and marketplaces from trading on their own accounts, and it would prohibit brokers from trading client assets.
The regulations also require crypto platforms to reimburse customers who are victims of fraudulent or unauthorized transfers. They would also prohibit the use of the word “stablecoin” to describe digital assets that are not backed 1:1 by dollars or other high-value liquid assets.
says james,
“Random fraud and dysfunction have become the hallmarks of cryptocurrency and it is time to bring law and order to the multi-billion dollar industry. Investors in New York need to be confident that safeguards are in place to protect them and their money. All investments are regulated to account for every penny of investors’ money – cryptocurrency should be no exception. These common sense regulations will bring more transparency and oversight to the industry and strengthen our ability to crack down on those who do not respect the law.”
James says her office will present the bill to New York state legislators for consideration in the ongoing legislative session.
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