Lawmakers on Capitol Hill are trying into what’s being completed to stop cryptocurrency fraud.
A Home oversight subcommittee requested regulators and business leaders to elucidate what they’re doing to cease it together with different scams in opposition to shoppers.
The difficulty was introduced up by Illinois Rep. Raja Krishnamoorthi, head of the Financial and Shopper Coverage subcommittee.
He requested leaders of the Treasury Division, Securities and Change Fee, Commodity Futures Buying and selling Fee, and Federal Commerce Fee for extra info on the steps they’re taking to curb shopper abuse linked to cryptocurrencies.
5 of the largest cryptocurrency exchanges had been additionally despatched inquiry letters, requesting paperwork on firm insurance policies relating to the elimination of faux accounts.
This transfer follows Monday’s warnings from the Federal Bureau of Investigation that criminals are extra ceaselessly exploiting vulnerabilities on sure decentralized finance platforms to steal cryptocurrency.
It has been a tough yr for cryptocurrencies. There was great volatility throughout which bitcoin has misplaced practically half its worth and different cryptocurrencies much more.
“Regardless of these vulnerabilities, the federal authorities has been sluggish to curb cryptocurrency scams and fraud. Current federal rules don’t comprehensively or clearly cowl cryptocurrencies beneath all circumstances,” reads one letter addressed to Treasury Secretary Janet Yellen.
A report on the impacts of cryptocurrencies and different digital property on financial markets and illicit finance is predicted to be launched within the coming weeks.
In March, President Biden issued an govt order calling for a number of companies to have a look at methods to manage digital property and gave them 180 days to take action.
The Related Press contributed to this report.