New York AG said to seek stronger authority to regulate crypto

New York Attorney General Letitia James is proposing a new bill that would give the New York Department of Financial Services stronger authority to police the cryptocurrency industry, according to several media reports dated Friday that cited a statement. The Crypto Regulation, Protection, Transparency and oversight Act (CRPTO), which needs to be agreed by state lawmakers to pass into law, would require crypto exchanges to have independent public audits of their financials and to reimburse customers who fell victim to fraud, Bloomberg reported. The proposed measures come as James in recent months has taken action against several crypto-focused firms, including failed Celsius Network ( CEL-USD ) and fellow crypto platforms Nexo and KuCoin, in an industry that has suffered from “rampant fraud and dysfunction,” the article said. In January, James filed a lawsuit against Celsius ( CEL-USD ) co-founder and former CEO Alex Mashinsky, alleging that he defrauded hundreds of thousands of investors out of billions of dollars worth of digital coins. Nearly two months later, she reportedly opposed crypto exchange Binance.US's deal to acquire Voyager Digital's ( OTCPK:VYGVQ ) assets for around $1B. “Rampant fraud and dysfunction have become the hallmarks of cryptocurrency and it is time to bring law and order to the multi-billion-dollar industry,” James said in the statement, as quoted by Bloomberg . “New York investors should have the peace of mind that there are safeguards in place to protect them and their money.” More on the Crypto Clampdown Ex-FTX exec Ryan Salame's home said to be searched by FBI Binance.US pulls out of $1B Voyager deal, blames 'hostile' regulatory climate SEC's Gensler defends crypto regulation at House oversight hearing Coinbase may consider relocating outside U.S., CEO Brian Armstrong says