U.S. congressmen introduce bills to tackle price manipulation in cryptocurrency space
The cryptocurrency industry is still in its nascent stage and governments around the world are trying their best to come to terms with this innovative technology. One such country is the U.S. which is grappling with the need to regulate the world of cryptocurrencies. There is still no clarity about cryptocurrencies and the regulatory framework that needs to be in place to govern various digital assets.
In one such move, Congressman Darren Soto along with Ted Budd introduced two pieces of legislation to help prevent virtual currency price manipulation and position America as the leader in the cryptocurrency industry.
As per the press release, the Virtual Currency Consumer Protection Act of 2018 and the U.S. Virtual Currency Market and Regulatory Competitiveness Act of 2018 will analyze the things that need to be done to prevent customers from price volatility and manipulation and place America as the pioneer in fostering innovation in this ever-evolving cryptocurrency space.
“Virtual currencies and the underlying blockchain technology has a profound potential to be a driver of economic growth. 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” said both the senators in a joint statement.
The two bills take into account the lack of clarity in providing a regulatory framework for cryptocurrency and direct regulatory bodies to have a comprehensive system in place for both the consumers and enterprises. The main aim of the bill is to minimize the chances of price manipulation in wake of the Attorney General’s report which highlighted the risk of price manipulation.
The Virtual Currency Consumer Protection Act directs the Commodities Futures Trading Commission (CFTC) to consider how price manipulation can take place in the virtual currency space and make recommendations which can improve the CFTC’s monitoring procedures.
The U.S. Cryptocurrency Market and Regulatory Competitiveness Act of 2018 directs the CFTC to conduct a comprehensive study of regulations in other countries and then come up with recommendations that would act as a catalyst to improve the regulatory framework in the U.S. and provide more clarity about how to regulate the crypto industry.
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