State AG floats ‘nation-leading’ crypto regulation

New York Attorney General Letitia James earlier this month introduced what she called “nation-leading” regulations on cryptocurrency that would protect investors, consumers and the economy. Some expressed concerns about the lack of concrete details despite the bill’s reasonable ambitions, and others questioned whether federal cryptocurrency legislation might be a better option so as to avoid a patchwork of state laws. The Crypto Regulation, Protection, Transparency, and Oversight (CRPTO) Act would “protect customers and investors in digital assets from fraudulent practices, eliminate conflicts of interest and increase transparency,” according to the bill text. Brokers also would be banned from borrowing or lending their customers’ assets, while marketplaces and advisors would be barred from holding customers’ funds. James’ bill would require crypto companies to make public disclosures about their financial condition—something that is not required now—as well as undergo mandatory independent auditing.