US congressman to review all Binance​.US files related to consumer safety

Brian Shroder, president and CEO of Binance.US, received a federal letter requesting the urgent disclosure of official documents that prove the exchange’s adherence to various investor-centric safety protocols. The request comes from Representative Raja Krishnamoorthi, chairman of the United States House Subcommittee on Economic and Consumer Policy — which falls under the Committee on Oversight and Government Reform.

In the letter addressed to Shroder, Krishnamoorthi highlights the lack of participation from crypto exchanges in helping the U.S. government curb financial fraud and protect investors, stating:

“I am concerned by the rapid growth of fraud and consumer abuse. I am also concerned by the apparent lack of action by cryptocurrency exchanges to protect consumers conducting transactions through their platforms.”

Krishnamoorthi was concerned about the “little or no vetting” that goes into listing tokens on crypto exchanges, which ultimately increases the risks for investors. The subcommittee has asked Binance.US, a subsidiary of Binance, to produce various documents in an attempt to help it review its concerns.

Binance.US will be required to produce all requested documents since the start of its operations and has been given a deadline of less than two weeks (Sept. 12) to produce them.

In the letter, Krishnamoorthi reiterates that crypto exchanges must take proactive measures to ensure investor safety “by implementing audit policies, requiring certain disclosures, delisting, and adopting other safety mechanisms.”

Shroder has also been asked to disclose the tools and mechanisms implemented by the exchange to reduce risks, fraud and scams.

Related: Congress will likely decide the fate of crypto jurisdiction — Lummis staffer

A recent survey revealed that 46% of adult crypto users in the United States say their investments performed “worse than they expected” amid the ongoing crypto winter.

A vast majority of the respondents tried investing in cryptocurrency while looking for a “different way to invest” and thought it was a “good way to make money.”