Concern over possible price manipulation of Bitcoin reaches Washington D.C.

Congressmen Darren Soto and Ted Budd have enacted laws to protect private investors from market manipulation and to ensure that the US becomes a leading country in the crypto currency industry.

Congressmen Darren Soto and Ted Budd have proposed two laws to prevent the manipulation of crypto currency prices and position the US as a leader in the crypto currency industry. The Virtual Currency Consumer Protection Act of 2018 and the U.S. Virtual Currency Market and Regulatory Competitiveness Act of 2018 are designed to analyze what can be done by the U.S. government to protect consumers from price manipulation and ensure that America is a world leader. Soto and Budd have published the following joint statement:

Crypto currencies and the underlying blockchain technology have a great potential to be a driver for economic growth. We must therefore ensure that the United States is at the forefront of protecting consumers and the financial well-being of virtual currency investors, while creating an environment for innovation to maximise the potential of these technological advances. This bill will provide data on how Congress can best mitigate these risks, while driving the development that will benefit our economy.

The two laws instruct the Commodity Futures Trading Commission (CFTC) and other financial regulators to make recommendations for improving the regulatory environment for both the consumer and the business development side, particularly in light of concerns that bots may manipulate Bitcoin’s price.

The Virtual Currency Consumer Protection Act instructs the CFTC to describe aspects of how price manipulation could occur in virtual markets and then make recommendations for regulatory changes that could improve the CFTC’s monitoring procedures to prevent price manipulation.

A comparative study will be conducted on crypto currency regulation in other countries, followed by recommendations for regulatory changes to enhance US competitiveness by providing clarity in regulation and examining alternatives to current burdensome regulations that may hamper innovation.