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wilslaw

Congress members introduce bills to avoid price manipulation of virtual currency

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Two new pieces of legislation were presented by Congressmen Darren Soto and Ted Budd. this legislation proposed measures to avoid price manipulation of virtual currencies. 

 

This move will encourage legislators and designated commission to research the risk to cryptocurrency and also adoption of preventive techniques.

 

The fillings which was named "U.S Virtual Currency Market and Regulatory Competitiveness Act of 2018" and "Virtual Currency Consumer Protection Act of 2018" will determine how legislators progress with digital currencies and also makes sure that the United State's position as a global leader is maintained.

 

Soto and Budd released the following statements : “Virtual currencies and the underlying blockchain technology have a profound potential to be a driver of economic growth. That’s why we must ensure that the United States is at the forefront of protecting consumers and the financial well-being of virtual currency investors, while also promoting an environment of innovation to maximize the potential of these technological advances. This bill will provide data on how Congress can best mitigate these risks while propelling development that benefits our economy.”

 

With these bills, the U.S Commodity Futures Trading Commission and other financial regulators would be forced to carry out action and also provide recommendations on ways to adopt the right measures to avoid price manipulation of virtual currency.

 

The CFTC will also consider how to enhance the regulatory framework for both business development and the consumers.

 

The Virtual Currency Consumer Protection Act will also direct the CFTC to explain ways in which price manipulation can occur in virtual markets and ways it can be avoided.

 

The exercise will develop new ideas for regulatory changes that could help improve the monitoring procedures of the regulatory body in avoiding price manipulation.

 

In terms of legal aspect in the industry, the CFTC will oversee the provision of regulatory clarity and study alternatives for inadequate rules, which might become more of a setback to innovation rather than protect consumers.

 

The CFTC will have to explain if virtual currencies qualify as commodities and also decide the merits and demerits of new rulings that could level things up and allow regulatory structure that can replace the current system of money transmission.
 

Edited by wilslaw

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