A House of Representatives oversight panel is asking some leading cryptocurrency platforms and financial regulators what they’re doing to fight fraud and to resolve claims of jurisdiction that have slowed the progress for providing clearer rules for the industry, the Washington Post reported.
Representative Raja Krishnamoorthi (D-IL), who heads the House Committee on Oversight and Reform’s subcommittee on economic and consumer policy, sent letters to five government agencies that accused the federal government of being “slow to curb cryptocurrency scams and fraud.”
“Without clear definitions and guidance, agencies will continue their infighting and will be unable effectively to implement consumer and investor protections related to cryptocurrencies and the exchanges on which they are traded,” he said in letters sent to Treasury Secretary Janet L. Yellen, Securities and Exchange Commission Chair Gary Gensler, Federal Trade Commission Chair Lina Khan, and Commodity Futures Trading Commission Chair Rostin Behnam.
In separate letters to Binance.US, Coinbase (NASDAQ:COIN), FTX, Kraken, and KuCoin, Krishnamoorthi said the crypto exchange have shown an “apparent lack of action” to protect their customers, alleging that platforms are listing digital tokens with “little or no vetting,” insufficient monitoring to prevent illicit activity, and inadequate measures to guard deposits.
The companies didn’t immediately respond to requests from comment.
Last month, Federal Reserve Vice Chair Lael Brainard said crypto regulation is needed “now” before it’s too late
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