Senator Kevin Thomas of New York has introduced legislation to punish rug pulls and other fraudulent conduct in the cryptocurrency field.
Additionally, the proposed bill proposes an amendment to criminalise virtual token distribution, concealed interest in crypto, and private key abuse under New York law.
Senate Bill S8839 aims to identify, sanction, and prosecute fraud by focusing on developers and schemes designed to defraud cryptocurrency investors. With the abundance of such initiatives within the sector, such a rule is long overdue.
The law clarifies how prosecutors may pursue crypto crimes while remaining compliant with blockchain technology and preventing fraud. A section of the bill describes rug pulling as the process by which developers
Sell more than 10% of such tokens within five years of the tokens’ last selling date. Additionally, it defines private key fraud as the unauthorised use or disclosure of another person’s private keys. Additionally, developers who fail to publicly reveal their own cryptocurrency holdings on the project website’s main page may be held accountable for fraudulent failure to disclose an interest in virtual tokens.
The bill has been forwarded to the Senate’s Codes Committee for examination. Additionally, Clyde Vanel introduced a counterpart measure in the lower house. Assembly Bill A8820 has also been referred to the lower chamber’s Codes Committee.
With the introduction of the bill in the New York assembly, the state cements its position as a pioneer in developing a regulatory framework for cryptocurrency. There is no set date for when the bill will be reviewed. However, if it is accepted and passes, it will take effect 30 days following approval.
Another bill seeks to safeguard the United States from El Salvador’s bitcoin ruling. Not only in New York do legislators introduce crypto-related legislation. At the federal level, two House members, California’s Norma Torres and Arkansas’ Rick Crawford, submitted legislation to reduce the dangers connected with El Salvador’s adoption of Bitcoin.
The measure would examine the impact of Bitcoin adoption on cyber security, democratic governance, and economic stability in El Salvador, as well as the impact on the United States.
Rep. Norma Torres slammed El Salvador’s adoption of Bitcoin, claiming that it was “not a deliberate embrace of innovation, but a foolish risk that is undermining the nation.”
“El Salvador is an independent democracy, and we respect its right to self-government,” she continued. “However, the United States must have a strategy in place to safeguard our financial institutions from the dangers associated with this choice.”
El Salvador’s president, Nayib Bukele, has denounced the law, claiming that the US government has no authority over his country’s internal affairs.
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