The New York Attorney General, Letitia James, the alarm rang in the Stablecoin bill of the United States Senate, warning the Congress on Monday that national innovation for national innovation for the United States of 2025 (GENIUS) Act, at least as currently, “do[es] It does not contain the rails necessary to protect the American public. “
In an eight -page letter sent on Monday, James urged Congress to reduce the speed of their efforts to approve Stablecoin legislation and “take the necessary time to write legislation that improves innovation while protecting our banking system that is the envy of the world.”
This is not James’s first letter to Congress warning about the dangers of what he has called “the non -controlled proliferation of digital assets.” In a letter from April to four members of the Congress, James requested that any digital asset legislation included several “principles of common sense”, including the ongoing of the status and the non -permission of cryptocurrencies in retirement accounts. In June, James presented a statement to the Chamber Financial Services Committee on the Chamber Crypto Structure Structure bill, the Digital Assets Clarity Law (CLARITY)who said that “it does not do enough to protect interests, investors and national security of the United States.”
In his most recent letter, James presented a proposed review of the bill, starting with the regulation of Stablecoin issuers as banks and “eliminating non -banking issues” of the bill. He added that Stablecoin issuers must be domiciled in the United States, calling Genius law to “Leav[ing] Space for foreign American dollars to be called established to operate to operate, essentially create the ‘tied lake’ “.
“The United States must maintain control over the dollar stable emitters, especially as Stablecoin’s issuance and its property bonds of the United States Treasury become systemically important for the United States Treasury markets grow,” James wrote. “The Congress should not risk the American markets hostage by stablecoin issues with foreign domicile.”
James also suggested that Stablecoin emitters would be required to identify the holders through “digital identity credentials.”
“Without digital identity, the capacity for the application of the law to prevent parties from participating in the evasion of sanctions, terrorist and illicit financing, money laundering and violations of the Law on Foreign Corrupt Practices, the Cobby Dissemination Law and other federal and state anti-fraud statutes will be worth it,” James wrote.
The Senate approved the genius law earlier this month. The House of Representatives has its own draft Stablecoin, the stable act, sitting before him, although he could also choose to take the version of the Senate as it is. Representative French Hill, president of the Chamber Financial Services Committee, said on multiple occasions that the Chamber and Senate version have important differences that must be resolved, and it is not clear what the Chamber will do at the time of publication.
