The New York Attorney General Letitia James admitted a warning to the US congress leaders with regard to the regulation of cryptocurrency, especially how Bitcoin and other virtual currencies could undermine the position of US dollar all over the world. It asked for stronger federal regulations to guard investors from fraud and criminal use on the cryptocurrency market.
NY's top lawyer demands stricter crypto restrictions
James emphasized the importance of a federal regulatory system for digital currencies in her congress letter. She found that this sort of currencies that were missing using the regulation expose fraud and money volatility.
Bitcoin currently represents an actual threat to the dominance of the dollar, especially since more corporations and individuals select digital currencies in the event that they send money overseas, James said.
Their concerns reflect that of Blackrock CEO Larry Fink, which suggested that Bitcoin could function security against the dollar by way of fiscal challenges and increasing inflation.
“Buy, sell or keep thousands and thousands of New Yorkers and hold cryptocurrency and other digital assets and deserve further protection,” James wrote in her message.
NEW: This morning @Newyorkstateeag Lititia James has sent a letter to the congress manager @leaderjohnthune, @senschumer, @speakersjohnson and @repjeffries, wherein they exist a federal regulatory framework for digital assets to fraud, criminal activity and financial … pic.twitter.com/yjjjdgbQdBT mitigate.
– Eleanor Terrett (@eleanorterrett) April 10, 2025
Stablecoin security measures and investor protection measures
The Attorney General attached particular importance to stablecoins, that are cryptocurrencies which might be set to stable assets resembling the US dollar. She asked the legislators to find out regulations that stipulate that StableCoin issuers have a US presence and support their tokens with US dollars or government bonds.
James described how stable coins could make the worth exchange between different cryptocurrencies easier, but will be manipulated without regulation and may generate fraud.
It also called for greater protection against crypto fraud that led to enormous financial losses. “Thousands of New York and investors across the country have lost thousands and thousands of dollars against cryptocurrency fraud and fraud that will be avoided with more robust federal regulations,” said James.
Hold crypto out of old -age pre -pension funds
James actually warned against having digital assets in pension accounts like Iras. She claimed that cryptocurrencies were too volatile and dangerous for old -age provision plans, whereby the acute price fluctuations of Bitcoin as proof of instability that may violate the financial well -being of individuals can violate, particularly pensioners who depend on savings. This is because financial institutions resembling Fidelity customers offer crypto -ira options.
In addition to the protection of the investor, James also claimed that thorough crypto regulations would improve national security. She explained that cryptocurrency purchases are frequently used anonymously and for criminal activities, whereby the federal government implements strict rules that cause crypto corporations to register with the supervisory authorities and to stick to anti-money laundering protocols.
Selected picture of Dado Ruvic/Reuters, Diagram from Tradingview
