- New York Attorney General Letitia James has urged Congress to establish a federal regulatory framework for cryptocurrencies, emphasizing stronger investor protections.
- She also called for stablecoin issuers to operate within the U.S. and back assets with secure, American-held reserves.
New York Attorney General Letitia James is sounding the alarm on cryptocurrency, calling on Congress to swiftly enact a comprehensive federal regulatory framework to protect digital asset investors.
In a letter addressed to key congressional leaders—including Senate Majority Leader John Thune and House Speaker Mike Johnson—James stressed the urgency of federal oversight, urging lawmakers to mandate registration for crypto companies and set minimum standards for listing tokens.
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“Without a clear federal structure, investors are left vulnerable to fraud, manipulation, and instability,” James wrote, citing the volatile nature of the crypto market and growing risks to consumer protection.
The appeal lands as lawmakers edge closer to establishing national rules for stablecoins—digital assets pegged to traditional currencies like the U.S. dollar. Often used to facilitate trading between more volatile tokens like bitcoin and ether, stablecoins have become a focal point in Washington’s broader push for crypto regulation.
James emphasized that stablecoin issuers should be required to operate within the United States and back their coins with safe, transparent reserves—specifically U.S. Treasuries and cash equivalents held in American banks.
Her warning comes against a backdrop of rising political influence from the crypto industry. In the 2024 election cycle alone, digital asset firms spent over $119 million supporting pro-crypto candidates. Meanwhile, former President Donald Trump has embraced the sector, signaling plans to revamp crypto policy should he reclaim the White House.
Bo Hines, head of Trump’s Council of Advisers on Digital Assets, recently stated the administration aims to pass stablecoin legislation by August.
As political momentum builds, James’ call serves as a pointed reminder that investor protection—not just innovation—must remain at the heart of crypto reform.
With trillions of dollars and millions of Americans now tied to digital currencies, the question is no longer if Congress will act—but how far it’s willing to go to bring order to the crypto frontier.
