Crypto exchanges pushed US lawmakers to bar provision on risky tokens: Report
Three companies reportedly pressed US senators for changes to a crypto bill, removing language that would require them to offer trading on tokens “not readily susceptible to manipulation.”
Three major cryptocurrency exchanges successfully lobbied US lawmakers to remove consumer protection language from proposed legislation, according to a new report. The companies pressed senators to eliminate provisions that would have required exchanges to offer trading only on tokens "not readily susceptible to manipulation," effectively weakening safeguards designed to protect retail investors from high-risk digital assets.
The lobbying effort targeted specific language in crypto-related bills that would have established stricter standards for which tokens could be offered on major trading platforms. The removed provisions were intended to prevent exchanges from listing tokens that could be easily manipulated by bad actors or lack sufficient market depth to ensure fair trading conditions.
The successful removal of these protections raises questions about the influence of industry players on cryptocurrency regulation. Without requirements to screen for manipulation-resistant tokens, exchanges maintain broader discretion over their listings, potentially exposing retail traders to higher risks. The development highlights the ongoing tension between industry growth objectives and consumer protection measures as lawmakers craft comprehensive crypto legislation.
Market observers will be watching for further developments in the legislative process and whether alternative consumer protection measures might be introduced. The outcome of these lobbying efforts could set important precedents for how the crypto industry shapes its own regulatory framework going forward.
Source: Cointelegraph
