The Attorney General of New York, Letitia James has introduced a new bill that would allow for greater regulation of the cryptocurrency industry in the state. The proposed legislation would grant the New York State Attorney General additional powers to oversee local crypto companies.
However, the development of the crypto sector in New York needs to be improved by the state’s regulatory measures. In particular, the BitLicense requirement and a two-year ban on new licenses for proof-of-work crypto mining have frustrated many in the industry.
While some level of regulation is necessary for the functioning of the crypto market, excessive regulation can burden the sector’s growth and innovation. The proposed Crypto Regulation, Protection, Transparency, and Oversight Act (CRPTO) seeks to balance regulation and innovation.
Under the proposed CRPTO law, crypto exchanges and companies must conduct financial audits, provide refunds in cases of fraud, protect customer assets, and comply with restrictions on lending or borrowing customer funds. Violators of the regulations would be punishable by citations and civil penalties of $10,000 per person and $100,000 per crypto company.
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The bill is scheduled for debate in the New York State Senate and Assembly on June 8. If passed, it would provide the New York Attorney General’s Office with more oversight and enforcement powers over crypto companies in the state.
