New York Attorney General Letitia James has called on Congress to strengthen pending stablecoin and crypto legislation, arguing that the current versions of the bills fail to provide adequate protections for investors and the financial system. In a letter to lawmakers on Tuesday, James expressed concerns that the STABLE Act and the GENIUS Act “do not contain the necessary guardrails to protect the American public.” James emphasized the need for Congress to take a careful approach, stating, “We urge Congress to take the time necessary to draft legislation that will enhance innovation while protecting our banking system, that is the envy of the world.” Calls for Bank-Like Regulation of Stablecoin Issuers The GENIUS Act recently passed the U.S. Senate with bipartisan support, while the STABLE Act advanced to a full House vote in April. Both bills aim to regulate stablecoins, but James warned that the current frameworks lack sufficient safeguards to address the risks of anonymous transactions, which she argued could facilitate criminal activity, fraud, and pose threats to national security. “Unregulated cryptocurrency transactions are a danger to investors, the economy, and national security,” James stated, urging Congress to amend the bills to require stablecoin issuers to operate under regulations similar to those governing banks. James also recommended that stablecoin issuers provide Federal Deposit Insurance Corporation (FDIC) insurance for stablecoin deposits and implement digital identity verification for transactions to prevent anonymous misuse by criminals. Additionally, she raised concerns about stablecoins giving an “undeserved advantage over community banks that are already in decline,” calling for protections to ensure local banks remain competitive. Criticism of Crypto CLARITY Act Letitia James has also expressed concerns over the Digital Asset Market Clarity (CLARITY) Act, arguing in a letter last month that the proposed legislation protects bad actors by enabling anonymity and failing to prevent fraud effectively. She warned that the bill “creates a technology-specific loophole that upends almost one hundred years of securities laws meant to protect America and its investors.” The New York Attorney General has a history of taking a strict stance on digital assets. In April, she urged Congress to prevent U.S. retirement funds from investing in crypto or crypto exchange-traded funds, citing their lack of intrinsic value. James has also pursued legal action against multiple crypto companies and exchanges, reflecting her consistent push for stronger oversight in the rapidly evolving digital asset sector. The post New York AG Urges Congress to Tighten Stablecoin, Crypto Bills appeared first on TheCoinrise.com .
