Two U.S. congressmen have reached across the partisan divide to introduce two bills to prevent cryptocurrency price manipulation.
However, if you’re worried about direct government interference into crypto, relax. These bills from Rep. Darren Soto, a Democrat from Florida, and Rep. Ted Budd, a Republican from North Carolina, ask the regulator already involved with crypto to work a bit harder to come up with a clear roadmap of what to do next. Both are members of the Congressional Blockchain Caucus.
According to the congressmen’s announcement, their two bills – “The Virtual Currency Consumer Protection Act of 2018” and the “U.S. Virtual Currency Market and Regulatory Competitiveness Act of 2018” – want to make the U.S. a “leader in the cryptocurrency industry.”
The Virtual Currency Consumer Protection Act, directs the Commodity Futures Trading Commission to describe aspects of how price manipulation could happen in virtual markets and then to make recommendations for regulatory changes that can improve the CFTC’s monitoring procedures in preventing price manipulation.
The U.S. Virtual Currency Market and Regulatory Competitiveness Act of 2018 directs the CFTC to conduct a comparative study of the regulation of virtual currency in other countries and then make recommendations for regulatory changes to promote competitiveness in the U.S. in the industry by providing regulatory clarity and examining alternatives for current burdensome regulations that may inhibit innovation.
Price manipulation is a major concern of Securities and Exchange Commission Chairman Jay Clayton regarding a bitcoin (BTC) exchange-traded fund and the likely reason action on a proposed ETF was delayed again on Thursday. In addition, the U.S. Justice Department is looking into whether the dollar-backed tether (USDT) stablecoin was used to manipulate the price of bitcoin.