New York Attorney General Latitia James sounded the alarm on the US Senate StableCoin Law Suggestions warning Congress on Monday that the guidance and establishment of National Innovation for US Stablecoins of 2025 (Genius) Act – at least as it currently stands – “Do[es] Does not contain the necessary protective frames to protect the US public. “
In a letter of eight pages sent on Monday, James called on Congress to slow down his efforts to adopt stablecoin legislation and “take the time needed to prepare legislation that will improve innovation, while our banking system protects our banking system that is the world’s envy.”
This is not James’ first letter to Congress warning of the dangers of what she has called “the uncontrolled spread of digital assets.” In an April letter to four members of the Congress, James asked that any digital asset legislation included several “common reason”, including onshoring stablecoins and dismissive cryptocurrencies in pension accounts. In June, James gave a statement to House Financial Services Committee about House’s Crypto Market Structure Bill, Digital Asset Market Clarity Act (CLARITY)As she claimed “do not do enough to protect America’s interests, investors and national security.”
In his latest letter, James posted a proposed revision of the bill, beginning by regulating stableecoin issuers such as banks and “eliminating non-bank issuers” from the bill. She added that stableecoin issuers should be required to reside in the United States calling the genius -acting “LEAV[ing] The space for foreign issuers of the US dollar was and supported stableecoins to operate, which essentially creates the ‘Tether -Smut Hole.’ “
“The United States has to maintain control over the dollar-pegged stablecoin issuers-Isærl as the stableecoin issue is growing, and their ownership of US Treasury becomes systemically important to the US Treasury Markets,” James wrote. “Congress should not risk American markets being held hostage by foreign judged stableco -outliers.”
James also suggested that stableecoin issuers identify holders via “digital identity information.”
“Without digital identity, the ability to law is to prevent parties from participating in sanctions evasion, terrorist and illegal funding, money laundering and violations of the Law on Foreign Corrupt Practice, the Lobby Business Act and other federal and state anti-fraud statements will be hobbled,” James wrote.
The Senate passed the genius law earlier this month. The House of Representatives has its own stablecoin bill, the stable action sitting in front of it, though it could also choose to take the Senate version as it is. Rep. French Hill, chairman of the House Financial Services Committee, has said on several occasions that the parliament and the Senate version have important differences to be extended and it is unclear what the house will do from press time.
