Congressmen Darren Soto and Ted Budd enacted legislation to protect retail investors from market manipulation. They also want to ensure that the United States become a leader in the cryptocurrency industry.
Congressmen Darren Soto and Ted Budd proposed two laws to prevent manipulation of cryptocurrency prices. At the same time, they want to position the U.S. as a leader in the cryptocurrency industry. These are the Virtual Currency Consumer Protection Act of 2018 and the 2018 Virtual Currency Market and Regulatory Competitiveness Act.
The goal of the 2 laws is to analyze what can be done by the US government to protect consumers from price manipulation in the cryptocurrency market for currencies like Bitcoin (BTC). At the same time, they want to ensure that America becomes a world leader in the field. Soto and Budd have published the following joint statement:
“Cryptocurrencies and the underlying blockchain technology have great potential to be a driver of economic growth. This is why we need to ensure that the United States is at the forefront of protecting consumers and the financial well-being of virtual currency investors. At the same time, we want to create an environment for innovation, and maximize the potential of these technological advances. This bill will provide data on how Congress can best mitigate these risks, while driving forward the development that benefits our economy.”
Consumer Protection from market manipulation
The two laws direct the Commodity Futures Trading Commission (CFTC) and other financial regulators to make recommendations for improving the regulatory environment for both the consumer and business development sides. Especially, given the concerns that bots could manipulate the price of Bitcoin.
The Virtual Currency Consumer Protection Act instructs the CFTC to describe aspects of how price manipulation can take place in virtual markets. It also instructs the CFTC to make recommendations for regulatory changes that could improv monitoring practices and prevent price manipulation.
A comparative study will be conducted on the regulation of cryptocurrency in other countries. This study will be followed by recommendations for regulatory changes to boost US competitiveness. By providing clarity in regulation and examining alternatives to current burdensome regulations, innovations can hamper.