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Sen. Ron Wyden Issues Consumer Protection Inquiries to Crypto Exchanges

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Sen. Ron Wyden, chairman of the Senate Committee on Finance, has called on major cryptocurrency companies to provide information on their customer protection measures following the bankruptcy of the FTX exchange.

Wyden sent letters to the leaders of Binance, Bitfinex, Coinbase, Gemini, Kraken and KuCoin and asked for information on how they plan to protect customers using their products in the event of financial failures, the senator’s office said Tuesday.

The cryptocurrency exchanges have until Dec. 12 to disclose the policies and practices they have in place to guard against market manipulation and suspicious trading, explain whether they separate assets bought or sold on their platform from their subsidiaries or affiliates and provide information on how they use consumer data.

Wyden also requested details on the companies’ real estate acquisitions financed by customer funds,

“As Congress considers much-needed regulations for the crypto industry, I will focus on the clear need for consumer protections along the lines of the assurances that have long existed for customers of banks, credit unions and securities brokers,” Wyden promised.