Major cryptocurrency exchanges to report to the US Congress on the fight against cryptocurrency fraud

The Committee on Economic and Consumer Policy Oversight of the US House of Representatives has requested reports from regulators on the fight against cryptocurrency fraud. Letters were sent to the Secretary of the Treasury, the Chairman of the Securities and Exchange Commission, the Chairman of the Federal Trade Commission, and the Chairman of the Commodity Futures Trading Commission. The request was also sent to cryptocurrency platforms Coinbase, FTX, Binance.US, Kraken, and KuCoin. The agency requires information on the measures taken to prevent cryptocurrency fraud.

«Given the popularity of cryptocurrencies as both a form of payment and investment, I am concerned about the rapid growth of fraud and consumer abuse,» said Raja Krishnamoorthy, a representative of the Committee, Illinois Congressman. Citing data from the Federal Trade Commission (FTC), Krishnamoorthy believes that the cryptocurrency industry will lose more than a billion dollars in fraudulent schemes in 2022 alone. «I am also concerned about the apparent lack of action by cryptocurrency exchanges to protect consumers who transact through their platforms,» the congressman comments.

Krishnamurthy asks US government agencies to decide whether cryptocurrencies should be considered «commodities, securities, or both.» It seems that the government considers the regulation of the cryptocurrency industry to be insufficient and wants to be directly involved.