New York Attorney General Letitia James voiced concerns over the lack of protections in stablecoin and cryptocurrency bills, calling for legislative reform.
Call for Stricter Stablecoin Regulation
Letitia James urged Congress to strengthen the pending STABLE Act and GENIUS Act, stating that the current versions of these bills provide inadequate safeguards for investors and the financial system.
"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," James remarked.
Critique of the CLARITY Act
James also raised alarms about the Digital Asset Market Clarity (CLARITY) Act, arguing it protects bad actors by allowing anonymity. She cautioned that the bill creates a "technology-specific loophole that undermines almost one hundred years of securities laws."
James' Stance on Cryptocurrency
Letitia James has a history of taking a firm stance on digital assets. In April, she urged Congress to bar U.S. retirement funds from investing in cryptocurrency, citing their lack of intrinsic value. Additionally, she has pursued legal actions against multiple crypto companies, reflecting her commitment to stronger oversight in the rapidly evolving digital asset sector.
James' response to stablecoin and cryptocurrency legislation highlights the need for stricter regulatory measures and a commitment to safeguarding investor interests while ensuring the stability of the financial system.
