Sen. Kevin Thomas of New York has proposed a bill to create new sanctions for rug pulls along with other schemes using “virtual crypto distribution, private key fraud, and fraudulent refusal to declare interest in virtual tokens.” A companion measure, Assembly Bill A8820, was also submitted to the New York State Legislature’s lower house.
Senate Bill S8839m, which establishes certain crypto fraud offenses, proposes identifying, punishing, and criminalizing crimes committed by developers and undertakings that seek to defraud cryptocurrency investors. Utilizing blockchain technology is intended to furnish prosecutors with better clarity in pursuing crypto crimes while also reducing fraud.
Senator Kevin Thomas Hopes To Curb Crypto Fraud
Kevin Thomas’ bill proposes a law reform that would subject developers to rug pull fines if they sell “more than 10% of similar tokens in five years of the last sale of such tokens.” It also defines a private key scam as the unauthorized use or disclosure of another person’s private keys. Developers may be held accountable for fraudulent negligence to declare a virtual token interest if they fail to disclose their own crypto assets on the project’s main page.
With Kevin Thomas’s latest law, the state of New York hopes to cement its status as a pioneer in the regulatory environment for cryptocurrencies. Legislators in New York aren’t the only ones interested in passing crypto-related legislation. Reps. Norma Torres of California and Rick Crawford of Arkansas, for example, have filed laws to reduce the dangers of El Salvador’s adoption of Bitcoin.
Rep. Norma Torres blasted El Salvador’s plan to accept Bitcoin, calling it “not a smart embrace of innovation, but a foolish risk that is undermining the country.” yMedia was founded by Shashank. He began his crypto journey in 2013 and is an ETH maximalist.