New York Attorney General Proposes New Crypto Regulatory Act

Opeyemi Sule

1 year ago

3 mins read

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New York Attorney General (AG) Letitia James has proposed a new state bill to regulate the cryptocurrency industry further, as she believes the space is enduring “rampant fraud and dysfunction”. This new set of crypto regulations would impose independent public audits of crypto exchanges, ensuring that New York residents do not lose their cryptocurrency investments to deceptive business practices.

New York AG Announces ‘Strongest And Most Comprehensive’ CRPTO Act

On Friday, May 5th, the office of the New York Attorney General released a press statement, disclosing the plans to augment state regulations over cryptocurrency and crypto-related organizations. James proposed the “Crypto Regulation, Protection, Transparency, and Oversight” (CRPTO) Act as a new piece of crypto legislation.

James described the CRPTO Act as “the strongest and most comprehensive” batch of regulations over the crypto industry in the United States. The AG’s office noted that the proposed bill, if passed, will safeguard investors, consumers, and the broader economy.

In her proposal, the attorney general suggested that the state of New York impose independent public audits of crypto exchanges and prohibit residents from owning brokerages and cryptocurrency-issuing companies to prevent conflicts of interest. Additionally, the bill would mandate crypto organizations to reimburse customers for fraud-related losses.

The CRPTO Act is quite comprehensive, as it also tackles the regulation of the stablecoin ecosystem. The proposed state law specifies that firms should only be allowed to market a digital asset as a stablecoin if it is backed one-to-one by “U.S. currency or high-quality liquid assets as defined in federal regulations”.

The CRPTO proposal will make it to the floor of the New York State Senate and Assembly during the 2023 legislative session. If passed, it would give the attorney general’s office the authority to issue subpoenas for violations of the regulations and impose civil penalties (up to $10,000 for individuals and $100,000 for organizations).

New York Regulators To Continue Crackdown On Crypto

Following the huge collapses that rocked the crypto industry in 2022, various federal agencies, particularly the Securities and Exchange Commission (SEC), have turned up the heat on the digital asset industry this year. In response, several crypto organizations have bemoaned the lack of clarity clouding cryptocurrency regulations in the country.

Interestingly, not only the Federal regulatory authorities are currently on high alert. State regulators, like the New York AG’s office, have also intensified regulatory efforts on the crypto industry.

For instance, the New York Attorney General’s office filed a lawsuit against the crypto platform KuCoin in March, alleging the firm provided brokerage services without properly registering. In February, the New York Department of Financial Services (DFS) ordered Paxos to stop minting stablecoin BUSD, stating that the dollar-pegged asset is an unregistered security.

With the proposed set of crypto regulations by attorney general Letitia James, it doesn’t appear that the New York regulators are slowing down in their clampdown on the crypto industry this year.

In any case, the cryptocurrency industry continues to show strength, with a market cap of $1.177 trillion.

Total Crypto Market Cap at $1.177 trillion | Source: Total Market Cap chart from TradingView

Featured image from Alex Costello/Patch, chart from TradingView

Opeyemi Sule

Opeyemi is a proficient writer and enthusiast in the exciting and unique cryptocurrency realm. While the digital asset industry was not his first choice, he has remained absolutely drawn since making a foray into the space over two years. Now, Opeyemi takes pride in creating unique pieces unraveling the complexities of blockchain technology and sharing insights on the latest trends in the world of cryptocurrencies.

Opeyemi savors his attraction to the crypto market, which explains why he spends the better parts of his day looking through different price charts. “Looking” is a rather simple way to describe analyzing and interpreting various price patterns and chart formations. However, it appears that is not Opeyemi’s favorite part - in fact, far from it.

Being able to connect what happens on a price chart to on-chain movements and blockchain activities is what keeps Opeyemi ticking. “This emphasizes the intricacies of blockchain technology and the cryptocurrency market,” he would say. Most importantly, Opeyemi thinks of any market insights as the gospel, while recognizing that he is only a messenger.

When he is not clicking away at his keyboard, Opeyemi is most definitely listening to music, playing games, reading a book, or scrolling through X. He likes to think he is not loyal to a particular genre of music, which can be true on many days. However, the fast-rising Afrobeats genre is a staple in Opeyemi’s Spotify Daily Mix.

Meanwhile, Opeyemi is a voracious reader who enjoys a wide category of books - ranging from science fiction, fantasy, and historical, to even romance. He believes that authors like George R. R. Martin and J. K.
Rowling are the greatest of all time when it comes to putting pen to paper. Opeyemi believes his reading of the Harry Potter series twice is proof of that.

Indeed, Opeyemi enjoys spending most of his time within the four walls of his home. However, he also sometimes finds solace in the company of his friends at a bar, a restaurant, or even on a stroll. In essence, Opeyemi’s ambivert (haha! been searching for an opportunity to use the word to describe myself) nature makes him a social chameleon who is able to quickly adapt to different settings.

Opeyemi recognizes the need to constantly develop oneself in order to stay afloat in a competitive and ever-evolving market like crypto. For this reason, he is always in learning mode, ready to pick up the slightest lesson from every situation. Opeyemi is efficient and likes to deliver all that is required of him in time - he believes that “whatever is worth doing at all is worth doing well.” Hence, you will always find him striving to be better.

Ultimately, Opeyemi is a good writer and an even better person who is trying to shed light on an exciting world phenomenon - cryptocurrency. He goes to bed every day with a smile of satisfaction on his face, knowing that he has done his bit of the holy assignment - spreading the crypto gospel to the rest of the world.

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