US Congressman wants to know about anti-crypto fraud measures

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US Congressman from Illinois Raja Krishnamurthy, amid the growing popularity of digital assets, requested data from cryptocurrency exchanges and regulators on combating crypto fraud.

Chairman of the Subcommittee of the House CommitteeUS Congressional Reform Oversight Representative Raja Krishnamoorthi sent letters to cryptocurrency exchanges Binance.US and Coinbase Global asking how they protect users from fraud. Krishnamurthy later sent similar letters to the CEOs of FTX, Kraken and KuCoin.

In addition, the congressman wrote a letterUS Treasury Secretary Janet Yellen and the heads of the Securities and Exchange Commission (SEC), the Commodity Futures Trading Commission (CFTC) and the Federal Trade Commission (FTC). Krishnamurthy is interested in how investors are protected from potential harm in a sector where "fraud is rampant."

“Given the growing popularity of cryptocurrencies as a form of payment and investment, I am concerned about the rapid increase in fraud and abuse by users,” he said in the letters.

Some American congressmen do everything they can tohinder the development of the cryptocurrency industry. Recently, US Senator Elizabeth Warren, concerned about the impact of cryptocurrencies on the financial system, proposed legislation that would prohibit banks from providing services related to digital assets. 

However, not all US legislators are inclinedagainst cryptocurrencies. Thus, US Senator Pat Toomey said that the Federal Deposit Insurance Corporation (FDIC) may be putting pressure on banks to prevent them from providing services to cryptocurrency companies.