A House committee has sent letters to four U.S. federal agencies and five cryptocurrency exchanges to inform them of what they are doing to combat cryptocurrency fraud and swindling.
Congress questions regulators and Crypto exchanges
The House Oversight and Reform Committee on Tuesday sent letters to four US federal agencies and five crypto exchanges to monitor crypto-related scams and scams.
The four agencies are the Treasury Department, the Federal Trade Commission (FTC), the Commodity Futures Trading Commission (CFTC), and the Securities and Exchange Commission (SEC). The five crypto trading platforms are Coinbase, FTX US, Binance US, Kraken and Kucoin.
Rep. Raja Krishnamoorthy (D-IL), who signed the letters, said they “request information on actions to combat cryptocurrency-related fraud and scams and additional steps needed to protect Americans.”
Krishnamoorthy, Chairman of the Subcommittee on Economic and Consumer Policy commented:
While inflation and stories of overnight riches have attracted professional and amateur investors to cryptocurrencies, scammers have cashed in.
The FTC said in June that since the start of 2021, more than 46,000 people have lost more than $1 billion to crypto fraud. “That’s about one in four dollars reported lost, more than any other payment method,” the inspector said.
“In many cases, the lack of a central authority to flag suspicious transactions, the lack of reversals of transactions, and the limited understanding of the underlying technology by many consumers and investors make cryptocurrency a preferred transaction method for fraudsters,” Krishnamurthy emphasized.
The lawyer added:
For all these reasons, I am concerned about the prevalence of fraud and consumer abuse associated with cryptocurrencies.
“Despite federal regulations, cryptocurrency exchanges must act to protect consumers who transact through their own platforms. By implementing audit policies, requiring certain disclosures, delisting, and other security measures, cryptocurrency exchanges can and should create a safer environment for consumers,” the congressman outlined.
The letters ask federal agencies and crypto exchanges to provide documents from January 2009 to September 12.
What do you think about Congress taking action against federal agencies and crypto exchanges regarding cryptocurrency fraud and scams? Let us know in the comments section below.
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