November 30, 2022

Senate Finance Committee Chair Requests Information on Crypto Exchange Asset Protection Practices

Senate Finance Committee Chair Ron Wyden (D-OR) asked six cryptocurrency exchanges to provide information on their respective asset protection policies.

In separate letters to Binance, Bitfinex, Coinbase, Gemini, Kraken and KuCoin, Senator Wyden asked the exchanges to detail their policies, if any, to guard against manipulation.

In the letters, Senator Wyden argued that cryptocurrency markets have a clear need for asset protections. He asked for information on how each company (i) differentiates customer and firm assets, including how it protects its reserves, (ii) uses customer data, (iii) addresses potential financial irregularities, tax compliance issues or money laundering concerns and (iv) insures customer funds in the event of bankruptcy. He also asked each company to include information relevant to any development of customer protections.

Senator Wyden requested that the companies respond by December 12, 2022.