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The Coin Rise 2025-04-11 09:10:52

NY Attorney General Urges Ban on Crypto in Pensions, Calls for Federal Oversight

New York Attorney General Letitia James is once again sounding the alarm on crypto, but this time her message is directed squarely at the halls of Congress. In a strongly worded 14-page letter dated April 10, James urged congressional leaders to impose robust federal regulations on the crypto sector and to draw a firm line when it comes to retirement funds: keep digital assets out. “The time has come for common-sense legislation that protects the American people from the dangers of an unregulated crypto industry,” James wrote. She warned that without decisive federal action, the rise of digital assets could jeopardize not just investors, but also the strength of the U.S. dollar and the stability of financial markets. James outlined six major risks that she believes crypto poses—from enabling criminal enterprises to draining money from the U.S. economy. She cited the sector’s vulnerability to fraud, market manipulation , and lack of price discovery as factors that make it uniquely dangerous, especially in the absence of meaningful oversight. Push for Regulations Among the key legislative actions James is advocating for: requiring stablecoin issuers to be based in the U.S. and to be fully backed by dollars or treasuries. She also called for registration mandates for crypto platforms and intermediaries, along with rigorous anti-money laundering (AML) compliance and fraud prevention measures. One of her key demands is transparency—particularly around pricing—and protections against conflicts of interest. James warned that without these guardrails, digital assets could evolve into a parallel financial system that operates beyond the reach of law and accountability. Crypto Has ‘No Place’ in Retirement Portfolios, Says James But James’s letter didn’t just focus on regulations—it took a firm stance on retirement security. She argued that digital assets should be categorically excluded from pension funds, labeling them as fundamentally incompatible with long-term financial planning. “Crypto is far too volatile to play any role in retirement savings,” she wrote. “These are not assets grounded in intrinsic value—they are speculative instruments at best, and deeply risky at worst.” She also took aim at crypto ETFs, warning that unlike those backed by stocks or bonds, crypto ETFs pose an elevated risk of permanent loss due to theft or collapse. James’s call comes just as the U.S. Department of Justice reportedly shutters its crypto crime unit —highlighting, she suggests, a regulatory vacuum that must be urgently addressed. The post NY Attorney General Urges Ban on Crypto in Pensions, Calls for Federal Oversight appeared first on TheCoinrise.com .

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