New York Attorney General Letitia James urges Congress to establish federal regulations for cryptocurrencies, highlighting investor protection and transparency. Her proposals include mandatory registration for crypto companies and stablecoin issuer requirements. This call comes amid increasing political engagement from the crypto industry and concerns over investor losses in New York.
New York Attorney General Letitia James has urged Congress to prioritise establishing a federal regulatory framework for cryptocurrencies. In a letter to prominent congressional leaders such as Senate Majority Leader John Thune and House Speaker Mike Johnson, she expressed the critical need for comprehensive regulations to protect digital asset investors from increasing market risks.
James proposed mandatory registration for cryptocurrency companies with a federal agency and the establishment of minimum listing standards for digital tokens. She believes that such regulatory reforms would enhance transparency and security within this dynamic sector.
The appeal for stronger regulations coincides with Congress’s movement towards new stablecoin regulations—currencies pegged to stable assets like the U.S. dollar. As stablecoins play a pivotal role in facilitating crypto transactions, James advocated for issuers to maintain a U.S. presence and secure reserves, including U.S. Treasuries, in American banks to bolster consumer protection.
The momentum for regulation is escalating in Washington, where the cryptocurrency industry has emerged as a considerable political entity. Reports indicate that the industry invested over $119 million during the 2024 elections to support pro-crypto candidates. This political activity has attracted the attention of lawmakers, with even figures like former President Donald Trump endorsing substantial shifts in U.S. crypto policy.
James highlighted the personal implications for millions of American investors, especially in New York, where many have suffered financial losses due to fraud and scams in the cryptocurrency ecosystem. She stated, “Thousands of investors in New York and across the country have lost millions due to cryptocurrency scams that stronger federal regulations could prevent,” reiterating the urgent need for effective measures to mitigate these risks.
As discussions surrounding cryptocurrency regulations evolve, James’ plea for federal oversight underscores growing apprehensions regarding the industry’s effects on investors and the broader financial landscape.
