In the midst of drafting its final report, Bankman-Fried, a founder of major cryptocurrency company FTX.com, was charged with securities fraud, wire fraud, conspiracy, money laundering and violating campaign finance rules in connection with collapse of his company.
Prosecutors accuse Bankman-Fried of siphoning billions of dollars in digital currency from customers and investors and using it to prop up his affiliated hedge fund,
He entered pleas of not guilty to all charges on
The global value of cryptocurrencies has fallen from about
“It is safe to say that many of the same human frailties that led to the myriad of other human speculative boom and bust cycles will turn out to be present at the core of the current Crypto industry uncertainty,” Ardinger wrote in his introduction to the commission’s report.
Need for regulation
In fact, Ardinger said a lack of robust regulation at the federal and state levels likely contributed to the extent of the alleged fraud.
“Indeed, certain aspects of these technologies, including some of the aspects that make them potentially useful and important, may also render them particularly effective vehicles for fraud, although that behavior is not unique to these technologies,” he said.
The report states the current level of oversight of cryptocurrencies in
“But this uncertainty is no reason to fail to pursue necessary clarification; in fact, it is a strong call to action by policymakers,” the commission concluded.
Steps recommended by the commission include:
—Creating a “blockchain dispute docket” in the
—Enacting legislation providing both transparency and limited liability to decentralized autonomous organizations that trade in these currencies.
—Making clear that these cryptocurrency traders would be eligible for business tax breaks that are available to “qualified investment companies” under current law.
—Establishing a Blockchain Quality Assurance Center at the
—Enhancing existing communications infrastructure in the state to improve access to cryptocurrency within state borders.
—Improving law enforcement training in this emerging field to better protect the public against fraud and scams.
A state law (HB 1503) that took effect in June, authored by Rep.
Sununu signed an executive order creating the crypto review commission. The panel included Ammon, state agency heads and financial industry executives.
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