A recently proposed legislation in New York seeks to punish fraudulent conduct in the cryptocurrency area. New York has demonstrated a readiness to enact crypto-related legislation to assist clean up the space.
Senator Thomas Introduce Bill Against Crypto Fraud
Sen. Kevin Thomas has introduced legislation that would make fraudulent activities and rug pulls in the cryptocurrency field illegal. Another addition sought by the proposed legislation would make crimes connected to digital token distribution, concealed interest in cryptocurrency, and abuse of private keys punishable under State law.
The bill, named Senate Bill S8839, intends to classify, penalize, and restrict fraud, as well as to punish developers and programs that are designed to defraud cryptocurrency investors of their investments. The legislation would provide investigators with more clarification on how to handle cryptocurrency crimes while still functioning following blockchain tech and combating fraudulent activity. According to the bill, rug pull is defined as a situation where developers sell over 10% of a token within a period of 5 years after the last sale.
Private key abuse is the unlawful use or publication of another person’s private key without permission. Developers who fail to disclose their cryptocurrency holdings fully on their website’s main page might be held liable for fraud.
The proposal has been sent to the Codes Committee of the Senate for further consideration and consideration. Another companion measure, introduced by Clyde Vanel in the lower house, is also in the works. Assembly Bill A8820 also has been sent to the Codes Committee of the lower house, where it will be considered.
The bill’s submission further establishes the state’s status as a leader in developing regulations for cryptocurrency. There is no set date for when the proposal will be reviewed. Furthermore, if authorized and passed, it will take full effect thirty days once it has been signed into law.
Another Bill Seeks To Safeguard The United States From El Salvador’s Decision On Bitcoin
Two House of Rep. members, Rick Crawford from Arkansas and Norma Torres from California, filed a proposal to alleviate the hazards related to El Salvador’s BTC adoption at the national level. The law would examine how BTC adoption may influence internet security, democracy, and political prosperity in El Salvador and how it may affect the U.S.
Torres slammed El Salvador’s plan to accept Bitcoin, saying that it was “never a deliberate embracing of innovations, but rather a foolish risk that is disrupting the nation.”
In addition, she stated that “El Salvador remains a sovereign state, but that “the U.S. should have a strategy to safeguard our financial institutions from the dangers associated with this decision.”