Senators Propose Law Aimed at Protecting Investors When a Cryptocurrency Exchange Fails

This post was originally published on this site

A bipartisan duo of U.S. senators introduced a bill that would aim to protect investors in the event that a cryptocurrency exchange files for bankruptcy by ensuring that their digital assets would be held separate.

The Responsible Financial Innovation Act, introduced by Sens. Kirsten Gillibrand (D., N.Y) and Cynthia Lummis (R., Wyo.) on Tuesday, would provide legal clarity for investors, creditors and crypto exchanges about the treatment of digital assets in bankruptcy, “ensuring that assets are appropriately safeguarded in…