New York Attorney General, Letitia James, has proposed new crypto regulation aimed at protecting investors, consumers, and the broader economy. However, some experts believe that the bill may not be adopted by other US states due to New York’s lack of a strong reputation in crypto regulatory leadership.
John E. Deaton, Managing Partner at the Deaton Law Firm, expressed his sentiment towards the proposed regulation while responding to a tweet by John Reed Stark, Senior Lecturing Fellow at Duke University School of Law.
Stark had proposed the regulation as “bold and powerful,” but Deaton observed that the New York Attorney General is politically motivated and cited a past event when New York pushed to ban Bitcoin, while several other US states moved in the opposite direction.
The proposed regulation aims to address the lack of robust laws that make the multi-billion-dollar industry prone to dramatic market fluctuations and prevent the facilitation of criminal conduct and fraud using cryptocurrencies. AG James’ new crypto regulation also aims to increase transparency, eliminate conflict of interest, and impose commonsense measures to protect investors and be consistent with laws guiding other financial services.
According to Attorney General James, “Rampant fraud and dysfunction have become the hallmarks of cryptocurrency, and it is time to bring law and order to the multi-billion-dollar industry, and New York investors should have the peace of mind that safeguards are in place to protect them and their money.” She noted that all investments are regulated to account for every penny of investors’ money, and cryptocurrency should be no exception.
However, it remains to be seen whether other US states will adopt similar measures or take a different approach. With the cryptocurrency industry rapidly evolving and expanding, it is crucial to strike a balance between regulation and innovation to ensure that investors and consumers are protected while fostering growth and development in the industry.
