The New York Attorney General, Letitia James, called on the legislators on Thursday to prioritize the creation of a federal framework to regulate cryptocurrencies, highlighting the urgent need for stronger protections for investors of digital assets. In a letter addressed to the main members of the Congress, including the head of the majority of the Senate John Thune and the president of the Mike Johnson Chamber, James underlined the need for full regulations to protect investors from growing risks in the cryptocurrency market.
According to Reuters, James proposed that cryptocurrency companies are required to register with a federal agency and that minimum standards are established to register digital tokens. This regulatory overhaul, she argued, would help bring transparency and security essential to the rapidly evolving sector.
James’ request comes while congress seems ready to adopt a bill that would introduce new regulations for stablescoins – cryptocurrencies designed to maintain stable value, generally fixed to the US dollar. Stablecoins are widely used on the cryptography market to facilitate transactions and as a means of transferring funds between different digital assets such as bitcoin and ether. In his letter, James stressed that Stablecoins issuers should be mandated to have an American presence and keep the reserves, including US Treasury bills, in American banks to further protect consumers.
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Pressure for stronger regulations is gaining momentum in Washington, where the cryptocurrency industry has become an important political force. According to Reuters, industry spent more than $ 119 million in the 2024 elections, supporting Pro-Crypto candidates. This political commitment drew the attention of the legislators, with personalities like former President Donald Trump pleading for large changes for American cryptography policies. Bo Hines, a Trump key advisor on digital assets, recently said that the White House hoped to see a stable bill was adopted before August.
In his letter, James underlined the personal issues involved for millions of American investors, especially in New York, where many have suffered financial losses due to scams and fraud in the cryptocurrency space. “Countless New Yorkers are investing in cryptocurrency and digital assets, and you have to do more to protect them and their money,” James wrote. “Thousands of investors in New York and across the country have lost millions of dollars because of the scams and fraud of cryptocurrencies that could be prevented with stronger federal regulations,” she added, stressing the importance of rapid action to curb these risks.
While discussions on cryptocurrency regulations continue, James appeal to federal surveillance reflects increasing concerns concerning the impact of industry on investors and the broader financial system.
Source: Reuters
