Two US congressmen introduced bipartisan legislation designed to prevent cryptocurrency price manipulation and position the United States as a leader in the crypto industry.
Democrat Rep. Darren Soto of Florida and Republican Rep. Ted Budd of North Carolina unveiled the following bills:
- Virtual Currency Consumer Protection Act. This bill directs the CFTC to explain how price manipulation occurs and to recommend regulatory changes to prevent it.
- Virtual Currency Market and Regulatory Competitiveness Act. This law directs the CFTC to conduct a comparative study of crypto regulations in other countries and to recommend ways to make the United States more competitive by providing regulatory clarity and finding alternatives to burdensome laws that impede innovation.
Lawmakers: Crypto Can Drive Economic Growth
In a joint statement released December 6, Rep. Darren Soto and Rep. Ted Budd underscored the “profound potential” of cryptocurrencies and blockchain, the technology underpinning bitcoin.
“Virtual currencies and the underlying blockchain technology has a profound potential to be a driver of economic growth,” the congressmen said. “That’s why we must ensure that the United States is at the forefront.”
Soto and Budd said the laws they proposed would protect consumers and investors without dampening the “environment of innovation” that would maximize the potential of these groundbreaking technologies.
DOJ Probes Bitcoin Price Manipulation
In September 2018, the New York Attorney General’s Office released a report concluding that some cryptocurrency exchanges can easily be manipulated because they lack sufficient consumer protections, are riddled with conflicts of interest, and don’t have safeguards to prevent abusive trading.
“Platforms lack robust real-time and historical market surveillance capabilities — like those found in traditional trading venues — to identify and stop suspicious trading patterns,” the report said.