House Commerce Committee works to protect consumers’ investments in cryptocurrencies
FTX Trading Ltd. previously declared bankruptcy in 2022
Rep. Ben Waxman March 27, 2024 | 2:36 PM
HARRISBURG, March 27 – Following the House Commerce Committee’s informational meeting, Rep. Scott Conklin, D-Centre, lauded legislation sponsored by Rep. Ben Waxman, D-Phila., which would protect consumers’ investments in cryptocurrencies.
The Digital Asset Regulation Act (H.B. 2081) would require cryptocurrency lenders to secure a minimum of 100% of the value of the currency exchanged in money to serve as collateral.
“As technology advances and cryptocurrency continues to emerge, we must protect consumers from financial collapses,” said Conklin, who serves as the majority chair of the House Commerce Committee. “With the global cryptocurrency market valued at $4.67 million in 2022 and expected to expand at a compound annual growth rate of 12.5% from 2023 to 2030, consumers’ finances are at risk if the market goes under. House Bill 2081 would provide protections for consumers by requiring cryptocurrency lenders to reserve collateral. By doing so, we boost consumer confidence.”
Waxman said, “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 a collapse occurs.”
Waxman’s legislation would ensure that if consumers lose access to their accounts, the collateral provides for reimbursement. It would also require cryptocurrency lenders to keep the consumer’s funds and the broker’s funds in separate accounts.
The committee’s informational meeting is available here.
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