Published: January 2023

Congress should empower regulators to prioritize investor protection over digital asset industry’s unproven promises

Consumer Action joined other consumer advocacy organizations in a letter to congressional leaders asking that they empower regulators to use their existing authorities to prioritize consumer and investor protection over the digital asset industry’s largely unproven promises, rather than pursuing legislative proposals, which can be inadequate or can be compromised by industry influence.

In the wake of the collapse of cryptocurrency exchange FTX, Consumer Action joined allies in a letter to congressional leaders asking that they advance policies to regulate digital assets and protect individual investors. Specifically, the letter urges the lawmakers to resist pursuing legislative proposals that either are compromised by industry influence or do not adequately address the systemic problems found within the digital asset industry, and instead seek to empower regulators to use their existing authorities. More broadly, the letter recommends that policymakers recognize that there are widespread systemic problems within the digital asset industry, and not characterize the FTX collapse as a case of a “few bad apples.”

Lead Organization

Americans for Financial Reform

More Information

Click here to read the coalition letter. 

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