New York Attorney General Letitia James urged Congress to strengthen pending stablecoin and Crypto legislation, saying the current version of the bill does not protect investors.
James is letter A letter to Congress on Tuesday said the guidance of the better ledger economy (stability) bill (stability) bill and the GENIUS bill and the establishment of stability transparency and accountability for national innovation “does not contain the necessary guardrails to protect the American public.”
“We urge Congress to take the time to draft legislation that is jealous of the world while protecting our banking system,” she said.
These two bills are intended to Regulating stabilizerand the U.S. Senate Passed the genius method Last month, a bipartisan vote, while a House committee Passed a stable bill Voting will be held in April.
James warned that the bill lacks adequate regulatory safeguards to address anonymous transactions that can promote criminal activities, fraud and threaten national security.
“Unregulated cryptocurrency transactions are dangerous to investors, the economy and national security,” she said.
Treat Stablecoin issuers like banks
James called on Congress to amend the bill to regulate stable issuers like banks.
“Given that Stablecoin issuers are essentially the job of banks, they should have the same regulations as banks to reduce systemic risks.”
She added that StableCoin issuers should also provide federal deposit insurance protection for Stablecoin deposits and require digital identity technology for all transactions to prevent anonymous criminal use.
James also urged protection for local banks, as stablecoins could offer “an inappropriate advantage over community banks that are already declining.”
Supporters of stability legislation, such as senators Kirsten Gillibrand Bill Hagerty believes it will protect consumers, achieve responsible innovation and maintain the dominance of the dollar.
James says cryptographic clear behavior is not up to standard
James also criticized the clarity of the digital asset market (clear)action letter Last month, it was believed that it could protect the anonymity of bad actors and could not provide sufficient fraud prevention measures.
The proposed legislation “creates a technology-specific vulnerability that upended nearly a hundred years of securities laws to protect the United States and its investors,” she said.
New York AG has a history of crypto operations
James has opposed digital assets several times before. In April, she Urge Congress To prevent U.S. retirement funds from investing in crypto or crypto exchange-traded funds, she believes there is no “intrinsic value.”
She has, too Prosecution During her tenure, several crypto companies and exchanges.
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