thecoinrise.com
Kevin Thomas, the famous Senator from New York State, has recently introduced a new bill amendment, Senate Bill S8839, proposing to mark rug pulls and other frauds related to digital assets as criminal offenses. This would also include misuse of private kets and hidden interests in crypto projects.
The bill by the senator calls for defining, penalizing, and criminalizing crypto-related frauds, particularly targeted at developers and projects that have notorious intentions like duping crypto investors.
Thomas’ proposal aims to give prosecutors a clear regulatory framework for investigating crypto crimes that are in line with the blockchain’s spirit while also fighting fraud. It proposes a legal amendment that would impose rug pull penalties on developers who sell “more than 10% of such tokens within five years of the last sale of such tokens.”
Bill wants developers to disclose their personal holdings
The act of exposing or exploiting another person’s private keys without their previous affirmative authorization is known as private key fraud. According to the bill, developers who do not publicly declare their individual crypto holdings on the main page of the main website might be charged with fraudulent failure to disclose an interest in cryptocurrencies.
At the time of writing, the bill was being reviewed by a committee to see if it was eligible for floor consideration.
Representatives Norma Torres of California and Rick Crawford of Arkansas have recently sponsored legislation to reduce the financial risks associated with El Salvador’s adoption of Bitcoin (BTC) as legal tender. The proposed legislation aims to assess the risks to El Salvador’s “cybersecurity, economic stability, and democratic governance.”
In March, after the approval, the president of the crypto-friendly nation and a Twitter influencer, Nayib Bukele, reacted to the bill passing Senate Committee in an emotional way.