U.S. Senator Ted Budd (R-NC) has introduced the Keep Your Coins Act, a bill that aims to protect cryptocurrency investors from fraud and manipulation. The bill comes in the wake of the conviction of the founder and CEO of cryptomining firm BitFunder, Jon Montroll, on charges of fraud related to the exchange.
The Keep Your Coins Act would make it illegal for any U.S.-based company to offer or provide investment management services for cryptocurrencies without registering with the Securities and Exchange Commission as a securities advisor. It would also require regular reviews and enforcement actions if necessary.
The bill is a response to the growing concerns about cryptocurrency-related investments. In particular, regulators have warned investors of the potential risks associated with investing in these digital assets, including fraud and price manipulation. The Keep Your Coins Act is intended to increase investor protections by requiring that anyone managing investments in cryptocurrency register with the SEC.
The bill has been referred to the Senate Banking Committee for review. It is unclear when, or if, the bill will be brought up for a vote.