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Crypto Winter Is Here And So Are Government Investigations – Fin Tech



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Cryptocurrency used to be going to the moon. Now, winter is
coming, and surviving the daily dips has been an exercise of
restraint and patience. Still, most crypto-billionaires are now
just crypto-hundred-millionaires. Naturally, the crypto crash has
significantly affected those with an extensive portfolio. Instead
of the significant and steady gains, the market got accustomed to,
even the most stable currencies plummeted through the floor or even
went extinct (RIP Luna).

New York Attorney General Letitia James has stepped in to pile
on to the beleaguered (and mostly misunderstood)
commodities/securities/currency industry. James urges New York crypto investors to contact
her office if they have been deceived or affected by the crypto
crash
(that’s everyone).

Christopher Warren, Managing Partner at Warren
Law Group, comments, “Instead of being involved in developing
and implementing regulations appropriately tailored to the unique
challenges and opportunities presented by blockchain and Web 3, the
State of New York wants to establish a moratorium on mining
operations. See Bill S 6486D. Despite the dubious success of a
moratorium on an intentionally decentralized global technology, it
would be far more productive and pragmatic for our legislature to
innovate and work with blockchain and Fintech companies,
not against them.”

Ms. James’ call for anyone affected by the crypto meltdown
(everyone) or employees of dissolved cryptocurrency platforms to
blow the whistle will likely not solve problems, only creating
unnecessary government investigations into the thousands of Fintech
startups in New York City. There is still a lack of clarity on the
government’s position on what is being regulated and what is
not.

It is the right of cryptocurrency, fintech, and financial
securities firms to engage in commerce with clear rules,
guidelines, and standards. The State of New York should be working
with cryptocurrency companies, not oppressing them or forcing them
to relocate out of New York.

The New York Attorney General, SEC, and other regulators are
very quick to call for buzzword investigations, despite a complete
dearth of guidance, regulation, or even some commonsense
legislation, on how cryptocurrencies and blockchain innovations are
being implemented. In fact, the two primary federal agencies
dealing with these issues, the SEC and CFTC, can’t even agree
if cryptocurrencies are securities or commodities. The Attorney
General’s statement implies that she intends to “regulate
through enforcement.

In the current environment, proper corporate governance and
counsel on securities and blockchain regulation developments are
imperative to defend against government overreach.

The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.

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