A U.S. congressman from Illinois asks prominent federal agencies and cryptocurrency exchange platforms for information on how to combat digital asset fraud.
In a new press release, Rep. Raja Krishnamoorthi requested information from Coinbase, Kraken, Binance, FTX and KuCoin about what they do to protect American investors from encrypted scams.
Krishnamoorthi also sent letters to the U.S. Treasury, the U.S. Securities and Exchange Commission (SEC), the Commodity Futures Trading Commission (CTFC) and the Federal Trade Commission (FTC) requesting the same information.
The congressman says he is concerned about the lack of central authority, irreversible transactions, and the public’s limited understanding of cryptocurrency fraud.
“As overnight price and wealth hikes attracted professional and amateur investors to cryptocurrencies, fraudsters benefited.
The absence of a central authority to report suspicious transactions in many situations, the irreversibility of transactions and the limited understanding of basic technology by many consumers and investors makes cryptocurrency a preferred treatment for fraudsters.
For all these reasons, I am concerned about the growth of fraud and consumer abuse associated with cryptocurrencies. ”
Krishnamoorthi says the information he requests will help Congress be informed when creating legislative solutions for the digital asset market.
According to the press release, crypto markets have weaknesses that the government has not yet corrected.
“Consumers are often unaware of the mix of resources available to inform cryptocurrency investment decisions, and insurers are reluctant to provide insurance to individual consumers as there is no regulation of digital assets.
Despite these weaknesses, the federal government has been slow to reduce cryptocurrency fraud and fraud, and current federal regulations do not cover digital assets comprehensively or clearly in all circumstances.