New York Attorney General Letitia James, who warned against the risks of cryptocurrencies in her previous statements, today introduced a new bill aimed at regulating cryptocurrencies.
The proposed bill gives the New York Department of Financial Services (NYDFS) greater powers to regulate cryptocurrency platforms, the Wall Street Journal reported.
The bill would give the New York attorney general's office broader enforcement powers over cryptocurrency firms operating in the state, while enacting the power of NYDFS to license industry participants and oversee the state's digital asset licensing regime.
The bill, called the "Crypto Regulation, Protection, Transparency and Oversight Act (CRPTO)," will be submitted to the New York State Senate and House by the office of New York Attorney General James.
The bill is expected to be considered at the 2023 legislative session, which will last until June 8.
New York Attorney General James, as the elected official, will have the power to subpoena crypto companies for violations of the law and impose civil penalties of $10,000 per violation for each individual or $100,000 per violation for each crypto company.
With this bill, James also seeks to shut down crypto businesses facing allegations of fraud and violation of the law.
The bill also includes rules that require cryptocurrency exchanges to subject their financial statements to independent public audits and to compensate customers who are victims of fraud.
Attitude Towards NYDFS and Cryptocurrency Platforms!
NYDFS, which oversees more than 30 crypto companies, signed a $100 million deal with Coinbase in January over allegations that it violated anti-money laundering laws by allowing customers to open accounts without adequate background checks.
NYDFS Superintendent Adrienne Harris previously said she would use her role as an industry leader in the US to help set the regulatory agenda for cryptocurrencies nationwide.
NYFDS has also filed lawsuits against a number of crypto platforms, including a lawsuit filed in March against KuCoin, an overseas crypto exchange, for failing to register as a seller of securities and commodities.