Federal crypto market rules needed to protect New Jersey investors
By: Christ Cho
Your Turn
Guest columnist
..... As congress weighs how to update federal laws for digital assets and cryptocurrency markets, we have a real chance to modernize the finical system in a way that supports innovation while also protecting New Jersey families from unnecessary risk.
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Now that the market-structure legislation is delayed in Congress, we should not let crypto special interest slow the process. Everyday investors need to have their investments and savings protected.
..... Digital assets and tokenized securities are no longer a niche product. They are increasingly tied to ordinary people's savings and investments, including 401(k)s, IRAs and college savings plans. As more New Jerseyans gain exposure to these markets, any new crypto market-structure bill must include the same core investor protections that have long underpinned our financial system: registration and disclosure requirements, strong anti-fraud rules and meaningful transparency. If Congress creates broad exemptions or loopholes, it will invite bad actors to operate outside the safeguards hat have kept U.S. markets fair and resilient for decades.
..... Weak rules wouldn't just harm individual investors: they would erode trust in our markets at the very moment when other countries are racing to attract digital asset businesses and capital. If the United States falls behind on investor protections and fails to set clear standards, we risk losing both market leadership and public confidence.
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For digital assets to deliver on their promise, they must be traded and managed under a consistent, coherent set of rules. Carving out large swaths of the market from basic oversight would only fracture the system and invite "shadow" markets where fraud and abuse thrive. Instead, Congress should pass a unified grounded in robust investor protections and clear accountability.
..... The senate Banking Committee was making meaningful progress on market-structure legislation, and the special interest that threw progress off course don't represent the views of everyone participating in the digital asset industry. Our state's residents expect strong rules of the road - whether they're dealing with a traditional broker or a digital asset platform. Congress should follow that example by passing crypto market rules that build investor confidence, rather than creating a race to the bottom.
..... Chris Cho is a council member in Closter.