Lummis, Gillibrand Revamp US Crypto Bill to Strengthen Consumer Protection – Bloomberg

Now, the senators are revamping their prior effort by including measures they say will help prevent another FTX, whose founder Sam Bankman-Fried has since been criminally charged and faces accusations that he mishandled billions of dollars of customer funds. The bill would require firms to segregate client assets and impose third-party custody requirements, according to a document detailing the updates to the legislative proposal. It would also create new advertising standards for marketing crypto and require exchanges to show proof that they have enough assets to cover customer balances.

The effort is ambitious, creating a framework to give the Commodity Futures Trading Commission more authority to oversee certain tokens and addressing everything from sanctions compliance and taxes to stablecoin regulation.

Source: Lummis, Gillibrand Revamp US Crypto Bill to Strengthen Consumer Protection – Bloomberg