New York Attorney General’s Bill
• New York Attorney General Leticia James has proposed a bill that would provide a basic framework for crypto regulation in the state.
• The bill aims to protect investors from fraud or theft, and prevent any future cryptocurrency mining companies from setting up shop in the state.
• Crypto analysts have expressed some skepticism about the bill due to James‘ past negative attitude towards cryptocurrency.
Basic Provisions of Bill
The proposed bill by Attorney General Leticia James includes provisions such as exchanges being required to reimburse customers if they are victims of fraud or theft, informing customers of conflicts of interest amongst crypto companies, educating them on risks associated with their investments, and prohibiting crypto companies from borrowing or lending customer assets.
New York’s History with Cryptocurrency
New York has had a long-standing anti-crypto attitude. Recently, the state has instituted a two-year crypto moratorium, preventing any new digital currency mining companies from setting up shop in the Empire State for the next 24 months. This is done to ensure that all crypto companies run purely on clean energy and obey present environmental standards. Additionally, earlier this year James sued several digital currency companies including Ku Coin and Coin Ex over allegations of various forms of fraud.
Skepticism Over Bill
Despite the positive intentions behind her new proposed bill, there is some skepticism regarding it due to James‘ past negative attitude towards cryptocurrency. Andrew Hinkes, a partner at law firm K&L Gates stated that because the bill was written by someone who doesn’t understand cryptocurrencies, it is “destined to fail” in the New York Congress given that its provisions are virtually impossible to apply to decentralized organizations.
Overall, while Leticia James‘ new proposed bill could be beneficial for protecting investors when it comes to cryptocurrencies, there is still some skepticism surrounding it due to her previous negative stance on cryptocurrencies and her lack of understanding regarding decentralization technology.