Legislators in the US have sought an explanation on how authorities are protecting consumers from cryptocurrency fraud.
The members of the house committee on oversight stated this on Tuesday.
A House oversight subcommittee asked regulators and industry leaders on Tuesday to explain what they are doing to stop cryptocurrency fraud and other scams perpetrated on consumers.
The head of the Economic and Consumer Policy subcommittee, representing Illinois, Raja Krishnamoorthi, while speaking at plenary queried asked the US Treasury Department, Securities and Exchange Commission, Commodity Futures Trading Commission, and Federal Trade Commission on measures put in place to stop rising cryptocurrency fraud.
The legislators in their submission had expressed concern over the rising tide of fraud and consumer abuse linked to cryptocurrencies.
As reported by ‘Oodaloop’, “the inquiries come as the cryptocurrency market has seen immense volatility, as bitcoin lost nearly half its value at one point this year and other cryptocurrencies fell even more.
Despite these vulnerabilities, the federal government has been slow to curb cryptocurrency scams and fraud. Existing federal regulations do not comprehensively or cover cryptocurrencies under all circumstances,” reads one letter addressed to Treasury Secretary Janet Yellen.