U.S. Representative Ritchie Torres has introduced two bills to Congress that would further regulate cryptocurrencies.
The latest bills introduced in the United States to regulate the cryptocurrency industry focus on ensuring security for investors and requiring transparency from companies participating in the industry.
The two regulatory proposals, introduced as HR 9241 and HR 9242, seek to complement the broader regulation of cryptocurrencies in the country, especially after the collapse of the FTX exchange, which caused billions of dollars in losses to its investors and users.
New bills for cryptocurrencies
Although the text of Torres' proposed legislation is not yet available, the Congressional website shows that the bill HR 9241 plans to require cryptocurrency exchanges and trading platforms to make regular disclosures about their Proof of Reserve operations to U.S. regulators such as the Securities and Exchange Commission (SEC).
The proposed regulation aims to ensure maximum transparency in the cryptocurrency industry, Torres said, by requiring companies to disclose the size of their assets and liabilities at specific times.
The bill also HR 9242 It was introduced to prohibit exchanges, cryptocurrency trading platforms and crypto-asset service providers from lending, leveraging or mixing customer funds through cryptocurrency exchanges without the customers' prior consent to carry out such transactions.
This latest bill seeks to address the risk factors that led FTX to bankruptcy, Fortune Crypto reported.
Torres, known as a cryptocurrency advocate, said that investors involved in the industry need protection from potential risks. The U.S. representative also said that cryptocurrencies have earned a place within the country's economy. However, Torres also said that regulation is necessary for the crypto industry to thrive.
Cynthia Lummis' proposal to regulate crypto
As part of broader regulation of cryptocurrencies in the United States, Wyoming Senator Cynthia Lummis reiterated that its regulatory proposal, which was leaked in early June this year, will help the country address the risks of the crypto industry and prevent other cases like the one that occurred with FTX and its investment arm, Alameda Research, from happening again.
Lummis told CoinDesk in an interview that her bill, called the “Responsible Financial Innovation Act,” imposes clear rules for the industry and its participants.
The bill, co-authored by Senator Kirsten Gillibrand, also distributes regulatory power over cryptocurrencies between the CFTC and the SEC and classifies cryptocurrencies, such as Bitcoin and Ethereum, between commodities and securities.
In this regard, during the interview, Lummis confirmed that Ethereum could meet the Howey test and be classified as a security in the country.
Maxine Waters responds to Sam Bankman-Fried on her hearing
Regarding the collapse of FTX, the US House of Representatives Committee on Financial Services has called Sam Bankman-Fried, former CEO of FTX and one of those responsible for its collapse, to testify before a hearing scheduled for next Tuesday, December 13.
However, on Twitter, Bankman-Fried said he did not feel prepared to appear at the hearing, claiming he is not aware of everything that happened at FTX.
Committee Chair Maxine Waters responded to Bankman-Fried saying it is imperative that she attend the scheduled hearing. Waters, also a U.S. congresswoman, noted that Bankman-Fried's statements and interviews to various media outlets in recent weeks demonstrate her knowledge of the FTX situation. “The information she has so far is sufficient for testimony,” said Waters.
Continue reading: Goldman Sachs perceives the FTX crisis as an opportunity to invest in the crypto sector
