New York -Riks Attorney Letitia James released a warning to US congress leader on the regulation of Cryptocurrency, especially how Bitcoin And other virtual currencies can erode the American dollar position around the world. She urged stronger federal regulations to protect investors from fraud and criminal use in the Cryptocurrency market.
NY’s foremost lawyer requires stricter crypto restrictions
James emphasized the importance of a federal regulatory system for digital currencies in her congressional letter. She identified that the lack of regulation, this type of currencies exposes users to fraud and monetary volatility.
Bitcoin currently presents an actual threat to the dominance of the dollar, especially since more companies and individuals choose digital currencies when sending money abroad, James indicated.
Her worries they echo from Blackrock CEO Larry Fink, who suggested that bitcoin could serve as a hedge against the dollar In the midst of us tax challenges and rising inflation.
“Millions of New Yorkers buy, sell or keep Cryptocurrency and other digital assets, and they deserve additional protection,” James wrote in their message.
New: This morning @Newyorkstateeag Letitia James sent a letter to the Congress Leaders @LeaderjohnthuneThe @SenschumerThe @Speakerjohnson and @Repjeffries prompts them to approve a federal regulations for digital assets to mitigate fraud, criminal activity and economic … pic.twitter.com/yjjdgbqdbt
– Eleanor Terrett (@eeleanortrett) April 10 2025
StableCoin protection measures and investors’ protective measures
The national lawyer places special emphasis on Stablecoinswhich are crypto courses associated with stable assets like the US dollar. She urged legislators to establish regulations that required Stablecoin issuers to have an American presence and support their symbols with US dollars or treasury.
James described how Stablecoins facilitate the exchange of value between different crypto courses, but in the absence of regulation can be manipulated and created fraud.
She also required greater protection from crypto fraud that has resulted in huge financial losses. “Thousands of New Yorkers and investors across the country have lost millions of dollars to Cryptocurrency fraud and fraud that can be avoided with more robust federal regulations,” James said.
Keep crypto from pension funds
James actually warned against having digital assets in Pension accounts As IRA. She claimed that crypto courses are too volatile and risky for pension -saving plans, with reference to the extreme price fluctuations of bitcoin as proof of instability that can damage the individual’s financial well -being, especially pensioners who rely on savings. This is because financial institutions such as Fidelity began to offer Crypto IRA options to customers.
In addition to investors’ protection, James also argued that thorough crypto regulations would improve national security. She explained that Cryptocurrency purchases are usually anonymous and are used for criminal activities, which requires the government to implement strict rules that require crypto companies to register with supervisory authorities and follow minutes against money laundering.
Image from Dado Ruvic/Reuters, Chart from TradingView
