New York Attorney General Letitia James has raised concerns regarding the GENIUS Act, which aims to regulate stablecoins. In a letter to Congress, she asserted that the bill currently lacks necessary protections for the American public. James urged lawmakers to slow down their legislative efforts to ensure that stablecoin legislation balances innovation with adequate safeguards for the banking system. Among her proposed changes, she suggested that stablecoin issuers be treated as banks and mandated to use digital identity technology in transactions to bolster national security. This is not the first time James has warned Congress about the risks of digital assets; previously, she has emphasized principles that should govern digital asset legislation, including requiring stablecoin issuers to be based in the U.S. and restricting the use of cryptocurrencies in retirement accounts. Her recent correspondence outlines a clear vision for stablecoin regulation that prioritizes the protection of investors and national security.

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