The House Committee on Oversight and Reform has sent on Tuesday four letters to regulatory bodies, including the US Securities and Exchange Commission (SEC) regarding their efforts to protect investors in the cryptocurrency market, CNBC has learned.
The authorities have reportedly also sent letters to five crypto exchanges, including COINBASE and Binance.US, as the market lost $1 billion in a variety of fraud schemes since 2021. The both regulatory bodies and crypto trading platforms have to respond by September 12. The response might allegedly be used as an additional tool to build a new legislative framework.
Rep. Raja Krishnamoorthi, D.-Ill., Chair of the Subcommittee on Economic and Consumer Policy said that the lack of a central authority to flag suspicious transactions "make cryptocurrency a preferred transaction method for scammers."
The report says that the authorities want to hear from Coinbase, FTX, Binance.US, Kraken and KUCOIN how they have been fighting against crypto scams and fraud since 2009.
