- This is an amendment proposed by Democrat Latrice Walker
- It would allow courts to accept digital assets as collateral
- But for now it’s only about stabelcoins backed by fiat
Democrat Latrice Walker introduced a bill yesterday, May 10, that would add digital assets to the list of acceptable funds for bail bonds.
The document intersects with the initiative of the Attorney General’s Office of New York on additional leverage on cryptocurrency exchanges.
You can read the text of the bill at. Notably, only fiat-secured stabelcoins are mentioned as a permissible way to redeem collateral obligations.
The document does not list specific tokens. It is also not entirely clear whether this applies only to “domestic” assets or to “foreign” assets (issued by a company outside the U.S. jurisdiction) as well.
The chances that the bill will pass are quite high. Prior to that, on May 5, the New York attorney general’s office proposed a bill called the Cryptocurrency Regulation, Protection, Transparency and Oversight Act.
Among other things, it would give law enforcement the power to sanction or even completely shut down an exchange suspected of fraud.
It will also be the responsibility of service providers in the state to compensate customers affected by the scam.
How this will work in practice, given that the U.S. still does not have a regulatory definition of cryptocurrency, is not entirely clear.
But it is clear that the state wants to fill the coffers at the expense of the big “players” in the industry.
Consequently, there will be a need for additional “refinements”. Under such circumstances, Walker’s bill seems a timely and appropriate amendment to the regulatory framework.
The loudest and most “expensive” in the cryptocurrency community was the bailout of Sam Bankman-Fried.
The two sureties have put up $250 million for him. This is the only reason he is awaiting trial under house arrest and not in jail.