New York Prosecutor General Leticia James called on Congress to better work out bills on the regulation of stablecoins in order to protect the interests of crypto-investors.

According to the letter of Leticia James, the bill on the transparency and accountability of Stablecoin (Stable) and the Genius bill, which regulates the issue and appeal of stablecoins, are not aimed at protecting the American public. According to James, they do not guarantee the fight against anonymous transactions. Unregulated cryptotransications are dangerous for investors, economics and national security of the country, they can contribute to criminal activity and fraud. Therefore, the congress should develop rules that will simultaneously contribute to the development of innovation and protect the banking system, said James.

The Prosecutor General called on the Congress to amend these bills so that the companies that launch stablecoins are regulated on a par with banks, in order to reduce system risks. The deposits of emitters of stablecoins should be insured by the Federal Deposit Insurance Corporation (FDIC), and for all transactions, digital identification technology should be used to prevent anonymous use of cryptocurrencies. Otherwise, stablecoins will have an undeserved advantage over local banks, which are already in decline.

James also criticized the bill on transparency of the digital assets market (Clarity), saying that it protects the anonymity of unscrupulous market participants, therefore it is not able to prevent fraud. On the contrary, this legislative initiative creates a “technological loophole” to bypass centenary laws on securities designed to protect American investors, James is unhappy.

New York Prosecutor General has repeatedly opposed digital assets. In 2023, she accused the Gemini and Genesis crypto company, and also forbade the work of the Coinex Hong Kong Clipper in the state, confiscating $ 1.7 million in it.