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Perhaps a new dawn in the crypto world as U.S.congress members – Congressmen Darren Soto and Ted Budd – plan to restructure the U.S. crypto industry by passing two bills strong enough to protect the crypto market from virtual currency price manipulation and friendly enough to encourage innovation in the crypto world.
There were several remarks to discredit the crypto sphere in the past months. Most recent of them is the New York Attorney General report on virtual exchange risk, where he stated that the crypto market lacks standard market surveillance and regulatory mechanisms like the stock market. This he said poses a great risk to customers of the crypto market, describing it as Wild West of Crypto.
In November, the U.S. Department of Justice launched a criminal investigation following the claim of Professor John M. Griffin that the spike in Bitcoin price in late November was a façade. He claimed that the price was artificially influenced by other cryptocurrencies. Amid these controversies, the congressmen have moved to introduce two bills that would help protect crypto customers while still encouraging innovations in the technology.
It is an undeniable fact that virtual currencies and blockchain technology as a whole contain the potential to cause a substantial growth in any economy. On that basis, the congressmen have decided to see beyond the numerous challenges facing the crypto industry and instead find away to steer it for the growth of the U.S. economy. The first bill, dubbed Virtual Currency Consumer Protection Act, directs the Commodity Futures Trading Commission (CFTC) to study the crypto market for any loop hole where price manipulation could occur and proffer solutions that can help prevent the impending danger.
While the second part of the bipartisan bill, tagged the U.S. Virtual Currency Market and Regulatory Competitiveness Act of 2018, instructs the CFTC to conduct an intensive and extensive comparative study of the regulation of virtual currencies abroad and recommend the necessary amendments that would help sustain the United States title as one of the global leaders in promoting innovation in the ever-evolving global marketplace.
In a joint statement by Congressmen Darren Soto and Ted Budd, they opined that virtual currencies together with the technology underpinning it, blockchain technology, possess just the right potential to drive economic growth, and as such they must ensure that the United States takes a lead in protecting consumers and the financial health of crypto investors as well as promoting an innovation-friendly environment that would encourage both private and public businesses to maximize the potential that the technology holds.