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House Co-Sponsorship Memoranda
House of Representatives
Session of 2023 - 2024
Regular Session
MEMORANDUM
| Posted: | February 15, 2024 04:00 PM |
|---|---|
| From: | Representative Ben Waxman |
| To: | All House members |
| Subject: | Cryptocurrency Consumer Protections |
| Virtual currency or cryptocurrency is a new and evolving marketplace. With the growth, expansion, and volatility of these currencies, we need to ensure that consumers are protected and are reassured that their investment into a cryptocurrency will not disappear if another collapse occurs, like the FTX collapse in 2022. With this in mind, I plan on introducing a bill that would require virtual currency brokers to reserve collateral for all digital consumer assets. In the event of a default, consumers losing access to their accounts, fraud, or other technical failure, collateral will be there to reimburse the consumer. In addition, a virtual currency broker will also be required to keep the consumer’s funds and the broker’s funds in separate accounts to avoid consumer money from being used for unsanctioned or unintended purposes. During the FTX collapse, Japan was one of the few countries that had regulations in place to protect consumers. As such, most of the customers of FTX Japan were paid in full when the collapse occurred. My bill will mirror some of these concepts. By providing these protections, consumers will have more confidence in these products and Pennsylvanians will not be left empty handed if another collapse occurs. It is my hope that you will join me and co-sponsor this bill that will protect Pennsylvanians who choose to invest in cryptocurrencies and limit damages if another cryptocurrency collapses. |
Introduced as HB2081