NY AG Urges Congress Boost Rules For Stablecoin Issuers
New York Attorney General Letitia James has called on Congress to enhance pending stablecoin and cryptocurrency legislation, asserting that current bills lack adequate investor protections. In a letter, she criticized the STABLE Act and the GENIUS Act for not providing necessary regulatory safeguards against anonymous transactions that could facilitate crime and threaten national security. James advocated for treating stablecoin issuers like banks, suggesting they should be subject to similar regulations, provide FDIC insurance for deposits, and implement digital identity technology to prevent misuse. She also expressed concerns about the potential competitive disadvantage for local banks due to stablecoins. Additionally, James criticized the Digital Asset Market Clarity (CLARITY) Act for protecting anonymity and failing to prevent fraud. She has a history of opposing digital assets and has previously urged Congress to restrict retirement fund investments in cryptocurrencies.
