Two congressmen from Florida and North Carolina have introduced bipartisan legislation aimed to help prevent cryptocurrency price manipulation.
Representatives Darren Soto (Democrat) and Ted Budd (Republican) jointly announced Thursday that their two bills – “The Virtual Currency Consumer Protection Act of 2018” and the “U.S. Virtual Currency Market and Regulatory Competitiveness Act of 2018” – are ultimately aimed at making the U.S. a “leader in the cryptocurrency industry.”
The bills essentially ask the Commodity Futures Trading Commission (CFTC) and other U.S. financial regulators to come up with a roadmap to better regulate cryptocurrencies in order to protect individuals and businesses.
The first bill seeks research on how crypto price manipulation takes place, its impact on investors, and how to prevent such activities through regulatory changes, and in turn, protect investors.
Earlier in September, the New York Office of the Attorney General released a report on cryptocurrency trading platforms, finding that many are vulnerable to market manipulation (although several exchanges pushed back against the claim at the time). “The industry has yet to implement serious market surveillance capacities, akin to those of traditional trading venues, to detect and punish suspicious trading activity,” the report stated at the time.
The U.S. Department of Justice is also looking into crypto market manipulation, reportedly most recently focusing on whether Bitfinex exchange and Tether Ltd. have supported bitcoin’s price using the tether stablecoin.
The second bill asks regulators to carry out research on crypto regulations in jurisdictions across the globe and recommend any legislative changes to promote the growth of adoption of cryptocurrencies in the U.S.