The New York Attorney General, Letitia James urged the congress to strengthen the legislation awaiting stablecoin and cryptography, affirming that the current versions of bills do not protect investors.
James said on Tuesday in a letter addressed to the congress that the transparency and responsibility of the stablecoin for a better law on the economy of the big book (stable) and the law of guide and establishment of national innovation for American staboins (genius) “do not contain the guarding guard necessary to protect the American public”.
“We urge the congress to take the time necessary to write legislation that will improve innovation while protecting our banking system, that is to say the desire of the world,” she said.
The two bills aim to regulate the stablecoins, and the US Senate adopted the law on engineering last month during a bipartite vote, while a chamber committee adopted the stable act to a full vote in April.
James warned that stablecoin invoices are lacking sufficient regulatory guarantees to tackle anonymous transactions that can facilitate criminal activity, fraud and threaten national security.
“Unregulated cryptocurrency transactions are a danger to investors, the economy and national security,” she said.
Treat stable transmitters like banks
James called on Congress to modify bills so that stablecoin issuers are regulated as banks.
“Since Stablecoin issuers mainly work as banks, they should be subject to the same regulations as banks in order to reduce systemic risk.”
Stablecoin issuers should also provide federal insurance protection Deposit Insurance Corporation for stabbing and require digital identity technology for all transactions in order to prevent anonymous criminal use, she added.
James also urged the protection of local banks, as stablecoins could provide “an undeserved advantage compared to community banks which are already down”.
Supporters of stable legislation, such as Kirsten Gillibrand and Bill Hagerty senators, argue that it will protect consumers, will allow responsible innovation and safeguard the domination of the US dollar.
James says Crypto Clarity Act is not up to it
James also criticized the law on the clarity of the digital asset market (clarity) in a letter last month, arguing that it protects the anonymity of bad players and fails to provide adequate fraud prevention measures.
In relation: Genius Act could strengthen power in dollars, write a “rules book” for the global financial system
She declared that the proposed legislation “creates an escape specific to technology which upsets almost a hundred years of securities laws intended to protect America and its investors”.
NY AG has a story of cryptographic actions
James previously rallied against digital assets on several occasions. In April, she urged Congress to prevent US pension funds from investing in funds negotiated in exchange for crypto or crypto, which she considered “no intrinsic value”.
She also continued several companies and cryptographic exchanges during her mandate.
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