Recently, two members of the United States Congress came up with two bills designed to make sure investors do not continue to fall prey to market manipulation tactics. Often the prices of cryptocurrencies are manipulated by unscrupulous parties employing treacherous tactics and the bills proposed by the two members of the Congress seek to safeguard investors from these manipulations. With this, we are seeing comprehensive bi-partisan legislation to tackle the issue and make sure US does not lose out on its top spot in the crypto world.
The two Congressmen who have proposed the bills are namely Darren Soto who is a representative of the Democrats from Florida, and Tedd Budd representing the Republicans from the state of North Carolina. The two bills presented by them are detailed as follows:
The Virtual Currency Market and Regulatory Competitiveness Act:
This bill recommends to the CFTC (Commodity Futures Trading Commission) to carry out a thorough study of crypto regulations across nations to understand the differences and similarities between them. Moreover, it further directs the body to draw conclusions that will enable the United States to consolidate its competitive edge in the crypto world, and formulate regulations which will actually promote innovation among crypto firms.
The Virtual Currency Consumer Protection Act.
This particular bill serves a recommendation to the CFTC to focus on finding out the specifics involved in price manipulation. In addition, it suggests the framing of regulations and modifications of existing frameworks to prevent such price manipulation from taking place at all.
The two Congressmen issued a joint statement on the 6th of December, 2018 and emphasized heavily on the immense potential that remains inherent in not just cryptocurrencies like Bitcoin but also the core that drives them: blockchain technology. An excerpt from the joint statement goes:
“Virtual currencies and the underlying blockchain technology has a profound potential to be a driver of economic growth,” the congressmen said. “That’s why we must ensure that the United States is at the forefront.”
The duo said that these laws, if formalized and implemented adequately, would help strike a balance between giving impetus to innovation and ensuring consumer security, thereby enabling the country to make the best out of such extraordinary technologies.
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