New York Legal professional Normal Letitia James urged lawmakers on Thursday to go laws to create a federal regulatory framework for cryptocurrencies, arguing that digital asset buyers urgently want stronger protections.
In a letter to high congressional management, together with Senate Majority Chief John Thune and U.S. Home Speaker Mike Johnson, James mentioned that lawmakers ought to require crypto corporations to register with a federal regulatory company and set minimal itemizing requirements for crypto tokens.
James’ letter comes as Congress appears likely to pass a bill creating stablecoin guidelines for the primary time. Stablecoins, a kind of cryptocurrency designed to keep up a relentless worth, often a 1:1 greenback peg, are generally utilized by crypto merchants to maneuver funds between different crypto tokens like bitcoin and ether.
In her letter, James mentioned that lawmakers ought to require stablecoin issuers to have a U.S. presence, and to deposit U.S. Treasuries and different money equivalents in American banks.
The digital asset trade has seen rising affect in Washington after spending more than $119 million backing pro-crypto congressional candidates in final yr’s elections.
President Donald Trump has sought to broadly overhaul U.S. cryptocurrency insurance policies after courting cash from the sector throughout his presidential marketing campaign.
Bo Hines, who leads Trump’s Council of Advisers on Digital Property, mentioned final month that the White Home needs a stablecoin invoice handed earlier than August.
“Numerous New Yorkers put money into cryptocurrency and digital property, and extra have to be carried out to guard them and their cash,” mentioned James. “1000’s of buyers in New York and throughout the nation have misplaced hundreds of thousands of {dollars} to cryptocurrency scams and fraud that might be prevented with stronger federal laws.”
(Reporting by Hannah Lang in New YorkEditing by Marguerita Choy)
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