Rep. Soto Introduces Bipartisan Bills Preventing Virtual Currency Price Manipulation
Today, Congressman Darren Soto (D-FL-09) introduced two pieces of legislation to help prevent virtual currency price manipulation and position the United States to be a leader in the cryptocurrency industry. The Virtual Currency Consumer Protection Act of 2019 and the U.S. Virtual Currency Market and Regulatory Competitiveness Act of 2019, will analyze what can be done to protect consumers from price manipulation and ensure America remains a global leader in fostering innovation in this evolving global marketplace.
Said Rep. Soto: “Virtual currencies and the underlying blockchain technology has a profound potential to be a driver of economic growth. That’s why we must ensure that the United States is at the forefront of protecting consumers and the financial well-being of virtual currency investors, while also promoting an environment of innovation to maximize the potential of these technological advances. This bill will provide data on how Congress can best mitigate these risks while propelling development that benefits our economy.”
The two bills, co-sponsored by Representatives Ted Budd (R-NC) and Warren Davidson (R-OH), direct the CFTC and other financial regulators to make critical recommendations for how to improve the regulatory environment for both the consumer and business development side. This legislation is crucial in light of concerns raised in the New York Attorney General’s recent report on virtual exchanges’ risk of manipulation and the Wall Street Journal’s description of potentially abusive software of bots manipulating the price of Bitcoin.
The Virtual Currency Consumer Protection Act directs the CFTC to describe aspects of how price manipulation could happen in virtual markets and then to make recommendations for regulatory changes that can improve the CFTC’s monitoring procedures in preventing price manipulation. This bill is co-sponsored by Rep. Bonnie Watson Coleman (NJ-12). Click here for the full bill text.
The U.S. Virtual Currency Market and Regulatory Competitiveness Act of 2019 directs the CFTC to conduct a comparative study of the regulation of virtual currency in other countries and then make recommendations for regulatory changes to promote competitiveness in the U.S. by providing regulatory clarity and examining alternates for current burdensome regulations that may inhibit innovation. This bill is co-sponsored by Rep. Tom Emmer (MN-06). Click here for the full bill text.