To combat incidents like the collapse of FTX, Terra, and Celsius Network in the crypto market, two bills on crypto regulations were submitted to the House of Representatives.
On Jan 19, Massachusetts Representatives, Josh S. Cutler, and Kate Lipper-Garabedian submitted a bill called “special commission on blockchain and cryptocurrency.”
If the representatives approve the bill, the commission will have 25 members, including some government officials like the president of the Senate and the House Speaker, who will take charge to examine if introducing blockchain technology for administrative purposes in Massachusetts will be safe or not. The commission will also examine the role the state representatives are likely to play in implementing blockchain laws.
“The commission shall take input from a broad range of stakeholders with a diverse range of interests affected by state policies governing emerging technologies, privacy, business, finance, the courts, the legal community, and state and local government.”
In addition to the blockchain technology commission, Susan L. Moran came up with a second thought to protect crypto users. He submitted a second bill titled “Act protecting consumers in cryptocurrency exchanges.”
The bill says that crypto exchanges operating in the state would have to pay an annual registration fee equal to 5% of gross revenue and that businesses must hold the material used for marketing for seven years.
Earlier in November 2022, Sherrod Brown, Chairman of the Senate Banking Committee, stated, “It is crucial that our financial watchdogs look into what led to FTX’s collapse so we can fully understand the misconduct and abuses that took place. I will continue to work with them to hold bad actors in crypto markets accountable.”
United States on crypto regulations
Based on recent events like the sudden FTX crash and a prolonged crypto winter, lawmakers discussed the need for new regulations on crypto assets. The Democrats believe that regulations on stablecoins and crypto assets would help in the development of the crypto market in the US.
Earlier, President Joe Biden declared that the crypto industry was growing fast and would need regulations to establish the USA as a leader in the digital asset sector.
The main regulators in the US that might be involved in the design and enforcement of regulations are the Securities and Exchange Commission (SEC) and Commodity Futures Trading Commission (CFTC)
Kristin Johnson, the CFTC commissioner, advised crypto users: “I strongly encourage members of the public to stay informed about the potential scams and abuses in the digital assets markets by visiting our investor advisory page.”
Nancy J. Allen is a crypto enthusiast and believes that cryptocurrencies inspire people to be their own banks and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning.
Source: https://www.thecoinrepublic.com/2023/01/26/to-protect-crypto-consumers-massachusetts-reps-advised-two-crypto-bills/