New York Attorney General Letitia James has called on Congress to enhance proposed legislation concerning stablecoins, arguing that current versions fail to protect investors adequately. In a statement addressed to Congress, she criticized the Stablecoin Transparency and Accountability for a Better Ledger Economy (STABLE) Act and the Guiding and Establishing National Innovation for US Stablecoins (GENIUS) Act for lacking essential regulatory safeguards. James emphasized that stablecoin issuers should be treated like banks, requiring them to adhere to similar regulations to mitigate systemic risks. She also advocated for mandatory Federal Deposit Insurance Corporation insurance for stablecoin deposits and technological measures to prevent anonymous transactions that can enable criminal activity. Furthermore, she expressed concern that these bills could disadvantage community banks. James has previously voiced her opposition to cryptocurrency investments in retirement funds and has taken action against several crypto companies during her tenure as Attorney General.

Source đź”—