a law, the CRPTO Act , that's meant to thwart cryptocurrency fraud and protect investors. Whether or not it's the"strongest and most comprehensive" set of crypto regulations that James touts, it would theoretically prevent repeats of some high-profile incidents.
The CRPTO Act would bar conflicts of interest, such as owning multiple practices or marketplaces that trade for their own accounts. Companies would have to publicly report financial statements, including risk disclosures. There would be a host of investor safeguards, such as"know-your-customer" requirements, compensation for fraud victims and a ban on stablecoins that aren't pegged directly to US currency or"high-quality" liquid assets.
The bill would let the Attorney General's office shut down lawbreakers and fine $10,000 per violation for individuals, and $100,000 per violation for companies. The office would also have the power to issue subpoenas and demand damages, penalties and restitution. The Department of Financial Services, meanwhile, would be ensured authority to license various crypto service providers.