The New York Attorney General, Letitia James urged Congress to adopt complete federal legislation regulating cryptocurrencies, warning that the absence of national standards endangers investors and American markets.
Why is the federal cryptocurrency federal regulations necessary?
In his letter of April 10 to Congress leaders, AG James underlined the dangers of an unregulated cryptocurrency market:
- Crypto scams now represent 10% of all financial fraud
- 50% of total financial losses linked to fraud stem from cryptographic scams
- The Americans have lost an estimated $ 12 billion in 2024 alone
James underlined the urgency of establishing a national regulatory framework to replace the incoherent patchwork of the laws of the states currently in place. The letter follows the controversial decision of the United States Ministry of Justice to dismantle its federal cryptocurrency fraud team – a decision that could further erode the protections of investors.
What would the legislation on proposed cryptography require?
The Attorney General James pleads for a set of strict federal directives which would bring transparency and monitoring to the cryptographic space. His proposed measures include:
| Payment proposed | Aim |
|---|---|
| Require an American presence for stablecoin issuers | Ensure responsibility under American law |
| Stable -coxos with the USD or treasury bills | Prevent non -apparent or unstable digital currencies |
| Save all the issuers and intermediaries | Improve transparency and regulatory monitoring |
| Anti-flask compliance | Fight illicit financial activity |
| Prohibit digital assets in retirement accounts | Protect long -term retirement savings |
| Prevent conflicts of interest | Encourage fair market practices |
| Identify and stop fraud | Proactively protecting investors |
Crypto CrackDows in New York: an application model
The Attorney General James led the accusation in the holding of responsible cryptographic societies:
- January 2025: First American official to signify a legal notice via NFT to the crooks.
- June 2024: Pursued Novatechfx on a pyramid system of $ 1 billion affecting more than 11,000 New Yorkers.
- May 2024: Obtained 2 billion dollars from Genesis Global Capital for defrauded investors.
- DEC 2023: Won $ 22 million against Kucoin for omitting to register.
- May 2023 – January 2023: Recovered millions of cafe, Nexo and Celsius corner for various illegal operations.
James argues that these implementing measures, although punchy, reveal the limits of authority at the level of the State and the need for federal coherence.
National security and market integrity at stake
Beyond consumer protection, James frames cryptographic regulations as a question of national security. It warns that digital assets are used to finance potentially hostile criminal operations and foreign regimes.
“Countless New Yorkers are investing in cryptocurrency and digital assets,” wrote James. “Thousands of people have lost millions of dollars for avoidable scams. Solid federal regulations can stop bleeding, protect our economy and protect Americans from future damage. ”
What is the next step for the congress?
With increasing bipartite concerns concerning fraud linked to the crypto and financial volatility, the appeal of the prosecutor General James adds pressure on the legislators to act. It remains to be seen whether the congress will take into account the warning and prioritizes a legislative whole.
Stay informed of the developments in cryptographic regulations – underestimate updates and alerts on policy changes with an impact on investors and financial markets.
The Attorney General calls for federal regulations on cryptocurrencies in the middle of growing fraud
This content is brought to you by the Fingerlakes1.com team. Support our mission by visiting www.patreon.com/fl1 or find out how you send your local content to us here.
