United States of America: Announced Crypto Regulation, Protection, Transparency and Oversight (CRPTO) Act including consumer protection regulation

On 5 May 2023, New York Attorney General Letitia James announced draft legislation, the Crypto Regulation, Protection, Transparency and Oversight (CRPTO) Act, which includes consumer protection regulation and which she intends to submit to the State legislature for consideration. The proposed legislation aims at a more stringent and comprehensive cryptocurrency regulation by enhancing transparency, eliminating conflicts of interest, and implementing investor protection measures. The bill would mandate independent public audits of cryptocurrency exchanges and prevent individuals from owning companies with potential conflicts of interest, such as brokerages and tokens. Further, the bill would prohibit fraudulent conduct and misrepresentations in connection to the marketing of digital assets. The bill would also set out the conditions according to which crypto platforms would be required to reimburse their customers for unauthorised asset transfers. Finally, the bill would give the state Attorney General enforcement jurisdiction over the Act.