US Congressmen introduce crypto legislation

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Two congressmen from Florida and North Carolina, Darren Soto (Democrat) and Ted Budd (Republican) jointly announced Thursday, 6th December, that their two bills — “The Virtual Currency Consumer Protection Act of 2018” and the “U.S. Virtual Currency Market and Regulatory Competitiveness Act of 2018” — are ultimately aimed at making the USA a “leader in the cryptocurrency industry.”

The bipartisan legislation effectively asks the Commodity Futures Trading Commission (CFTC) and other US financial regulators to come up with a roadmap to a better crypto regulatory system that will protect individuals and businesses. The first bill wants research to be undertaken on crypto price manipulation and how it happens, what its impact is on investors and how to prevent it.

In September, the New York Office of the Attorney General released a report on cryptocurrency trading platforms, finding that many are vulnerable to market manipulation, stating, “The industry has yet to implement serious market surveillance capacities, akin to those of traditional trading venues, to detect and punish suspicious trading activity.”

The second bill asks regulators to carry out research on crypto regulations in jurisdictions across the globe and recommend any legislative changes to promote the growth of adoption of cryptocurrencies in the United States.

In the joint statement, Soto and Budd said, “Virtual currencies and the underlying blockchain technology has a profound potential to be a driver of economic growth.” And they added: That’s why we must ensure that the United States is at the forefront of protecting consumers and the financial well-being of virtual currency investors, while also promoting an environment of innovation to maximize the potential of these technological advances. This bill will provide data on how Congress can best mitigate these risks while propelling development that benefits our economy.”

A number of US congressmen have been waiting for crypto and blockchain related bills for some time, and now they have two substantial bills to consider.

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