Originally published on: July 29, 2024
In a move to tackle the misuse of cryptocurrencies, lawmakers in the United States House of Representatives have unanimously approved the Financial Technology Protection Act on July 22. The bill, presented in April 2023 by Representatives Zach Nunn and Jim Himes, underscores the importance of safeguarding against security threats and preventing money laundering while ensuring consumer rights.
Addressing Rogue Actors and Sanctions Evasion
Rep. Nunn emphasized that the legislation aims to shield the US from security risks posed by rogue entities and foreign nations that might exploit cryptocurrencies to circumvent sanctions and engage in illicit activities.
Crackdown on Securities Fraud
On July 26, Andrew Left, the founder of Citron Research, found himself entangled in a securities fraud scandal, alleged to have illicitly profited $16 million through stock manipulation practices. The accusations implicated Left in using deceptive techniques like “bait and switch” to mislead investors through social media and other channels.
Marathon Digital Faces Hefty Fine
Marathon Digital, the leading Bitcoin mining company in terms of market capitalization, was slapped with a substantial $138 million penalty on July 23 for violating a non-disclosure agreement. Co-founder of US Bitcoin Corp, Michael Ho, emerged victorious in the legal battle against Marathon Digital Holdings for breaching the non-circumvention deal.
New Faces on Coinbase’s Board
Cryptocurrency exchange Coinbase welcomed three fresh faces to its board of directors, with the notable addition of former Bill Clinton aide, Chris Lehane. Lehane, previously a Democratic strategist for Clinton, expressed his enthusiasm in supporting Coinbase’s advocacy for the over 52 million Americans involved in the crypto space.
Enhanced Oversight in the Crypto Realm
With the approval of the Financial Technology Protection Act and regulatory actions against fraudulent activities in the cryptocurrency sphere, the US demonstrates its commitment to fostering a secure and transparent environment for digital asset transactions.
Investing in the Future of Cryptocurrencies
As the crypto landscape evolves, regulatory measures and corporate governance enhancements play a pivotal role in sustaining investor confidence and advancing the responsible adoption of digital currencies.
