New York Attorney General Letitia James urged James to strengthen the pending law of Stablecoin and Crypto, saying that current versions of the bills do not protect investors.
James said in a Letter Stablecoin Transparency and Accountability for a Better Ledger Economy (Stablecoins (Genius) Act “Act” Do not contain the necessary guards to protect the American public. “
“We encourage Congress to provide the time it takes to draft the law to improve change while protecting our banking system, that’s the envy of the world,” he said.
Both bills are aimed at Regulate stablecoinsand the US Senate The Genius Act has been passed Last month in a bipartisan vote, while a home committee The steady motion has been passed to a whole floor vote in April.
James warned that Stablecoin bills lack sufficient regulatory protection to deal with unknown transactions that could facilitate criminal activity, fraud, and threat to national security.
“Irregular cryptocurrency transactions are a risk to investors, economics, and national security,” he said.
Treat stablecoin issues such as banks
James called for Congress to change the bills so that Stablecoin readers can be repaired like banks.
“Due to those who provide stablecoin that are important to operate as banks, they must undergo the same regulations such as banks to reduce systematic risk.”
Stablecoin issues should also provide Federal Deposit Insurance insurance insurance protection for Stablecoin deposits and require digital identification technology for all transactions to prevent unknown criminal use, he added.
James also urged protection for local banks as Stablecoins could provide an “inappropriate advantage over community banks that are already declining.”
Stablecoin law advocates, such as senators Kirsten Gillibrand And Bill Hagerty, argue that it will protect consumers, enable responsible change, and protect the dominance of the US dollar.
James says the Crypto Clarity Act is also not up to par
James also criticized the clarity of the digital asset market (Clarity) Act on a Letter Last month, it focused on protecting the misconduct of the bad actor and failed to provide enough steps to avoid fraud.
He said the proposed law “creates a specific loophole technology that has risen to nearly a hundred years of security laws which means protect America and its investors.”
NY AG has a history of crypto actions
James had previously rallied against digital assets on many occasions. In April, he Congress was urged To prevent retirement funds from us from investing in funds exchanged by crypto or crypto exchange, which he considers “no intrinsic value.”
He has it too Sued There are many crypto companies and exchanges during his tenure.
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