The Genius Act lacks the ‘required guardrails’ for investor protection, Naray Letitia James told Congress
New York Attorney General Letitia James rang an alarm at the US Senate’s Stablecoin Bill, which warned Congress on Monday that the guide and establishment of national change for the US Stablecoins of 2025 (Genius) Act – at least as it stands – “do (es) do not contain the necessary guards to protect the American public.”
In an eight-page letter sent Monday, James encouraged Congress to slow down efforts to pass the Stablecoin law and “take the time needed to draft the law to enhance the change while protecting our banking system of envy the world.”
This is not James ‘first letter to Congress’ warning of the dangers of his so -called “the uncontrollable proliferation of digital ownership.” In an April letter Of the four members of Congress, James asked that any digital law law included some “common principles of understanding” including onshoring stablecoins and did not allow cryptocurrencies in retirement accounts. In June, James submitted a statement In the House Financial Services Committee on the Crypto Market Market Structure Bill, the Digital Asset Market Clarity Act (Enlightenment)That he claims to be “not enough to do to protect American interests, investors, and security.”
In his latest letter, James has laid out a proposed overhaul of the bill, which begins with regulating Stablecoin releases as banks and “removed non-banks” from the bill. He added that Stablecoin issues should be domicted in the US, calling the Genius Act for the “Leav (Ing) Room for Foreign Issuers of US Dollar Denominated and Backed Stablecoins to operate, essentially creating a ‘Tether Loophole.'”
“The US must maintain control over pegged stablecoin dollars that have echoed as Stablecoin’s issuance and their ownership of US wealth are becoming systematically important in US Treasury markets,” James wrote. “Congress should not risk American markets held in the hostage of foreigners with Domic Stablecoin.”
James also suggested that Stablecoin readers are required to identify holders through “digital identity credentials.”
“Without digital identity, the law enforcement ability to stop parties from engaging in the prevention of penalties, terrorists and forbidden financing, money laundering, and breaking the foreign corrupt practices act, lobbying disclosure of law and other federal and state anti-frauded laws,” James’ letter.
The Senate passed the Genius Act earlier this month. The House of Representative has its own Stablecoin Bill, the Stable Act, which is sitting in front of it, though it can also be chosen to make the Senate version of AS-IS. Rep. French Hill, the chairman of the House financial service Committee, said on many occasions that the House and Senate version has important differences that need to be repatriated, and it is unclear what the house will do as a press time.
