New York Attorney General Letitia James issued a warning to US congressional leaders concerning regulation of cryptocurrency, significantly how Bitcoin and different digital currencies might erode the US greenback’s place world wide. She urged stronger federal rules to guard traders from fraud and prison use within the cryptocurrency market.
NY’s Top Lawyer Demands Stricter Crypto Restrictions
James emphasised the significance of a federal regulatory system for digital currencies in her Congressional letter. She recognized that missing regulation, these sort of currencies expose customers to fraud and financial volatility.
Bitcoin at present presents an precise menace to the dominance of the greenback, significantly since extra companies and people go for digital currencies when sending cash abroad, James indicated.
Her considerations echo these of BlackRock CEO Larry Fink, who urged that Bitcoin might function a hedge against the dollar amid US fiscal challenges and rising inflation.
“Millions of New Yorkers actively buy, sell or hold cryptocurrency and other digital assets, and they deserve further protection,” James wrote in her message.
NEW: This morning @NewYorkStateAG Letitia James despatched a letter to congressional leaders @LeaderJohnThune, @SenSchumer, @SpeakerJohnson and @RepJeffries urging them to move a federal regulatory framework for digital belongings to mitigate fraud, prison exercise, and monetary… pic.twitter.com/yJjDgBqdBt
— Eleanor Terrett (@EleanorTerrett) April 10, 2025
NEW: This morning Stablecoin Safeguards And Investor Protection Measures
The Attorney General positioned specific emphasis on stablecoins, that are cryptocurrencies pegged to steady belongings such because the US greenback. She known as on lawmakers to ascertain rules mandating that stablecoin issuers have a US presence and help their tokens with US {dollars} or treasuries.
James described how stablecoins facilitate the trade of worth amongst varied cryptocurrencies however, within the absence of regulation, may be manipulated and create fraud.
She additionally demanded larger protections from crypto scams which have resulted in super monetary losses. “Thousands of New Yorkers and investors nationwide have lost millions of dollars to cryptocurrency scams and fraud that can be avoided with more robust federal regulations,” James stated.
Keep Crypto Out Of Retirement Funds
James truly cautioned in opposition to having digital belongings in retirement accounts like IRAs. She contended that cryptocurrencies are too unstable and dangerous for retirement financial savings plans, citing the acute worth fluctuations of Bitcoin as proof of instability able to injuring the monetary well-being of people, particularly retirees counting on financial savings. This is as a result of monetary establishments like Fidelity started providing crypto IRA choices to purchasers.
In addition to investor safety, James additionally contended that thorough crypto rules would improve nationwide safety. She defined that cryptocurrency purchases are often nameless and used for prison actions, thus necessitating the federal government to implement stringent guidelines mandating crypto companies to register with regulators and cling to anti-money laundering protocols.
Featured picture from Dado Ruvic/REUTERS, chart from TradingView
