New York Attorney General Warns of Bitcoin’s Impact, Calls for Congressional Action
New York Attorney General Letitia James has issued a warning to US congressional leaders regarding the regulation of cryptocurrency, specifically the potential impact of Bitcoin and other virtual currencies on the global position of the US dollar. She emphasized the need for stronger federal regulations to safeguard investors from fraud and criminal activities in the cryptocurrency market.
NY’s Top Lawyer Calls for Tighter Crypto Regulations
In a letter to Congress, James stressed the importance of a federal regulatory framework for digital currencies. She highlighted the risks of fraud and financial volatility that users are exposed to in the absence of proper regulations.
James raised concerns about Bitcoin posing a real threat to the dominance of the US dollar, especially as more businesses and individuals turn to digital currencies for cross-border transactions.
Her views align with those of BlackRock CEO Larry Fink, who suggested that Bitcoin could serve as a hedge against the dollar amid economic challenges and inflation.
“Millions of New Yorkers actively engage in cryptocurrency transactions and they deserve enhanced protection,” James stated in her message.
New: This morning @NewYorkStateAG Letitia James sent a letter to congressional leaders @LeaderJohnThune, @SenSchumer, @SpeakerJohnson and @RepJeffries urging them to pass a federal regulatory framework for digital assets to mitigate fraud, criminal activity, and financial… pic.twitter.com/yJjDgBqdBt
— Eleanor Terrett (@EleanorTerrett) April 10, 2025
Ensuring Stability and Protecting Investors
The Attorney General highlighted the significance of regulating stablecoins, which are cryptocurrencies tied to stable assets like the US dollar. She urged lawmakers to mandate stablecoin issuers to have a presence in the US and back their tokens with US dollars or treasuries.
James explained how stablecoins facilitate the exchange of value across different cryptocurrencies but emphasized that without regulation, they can be manipulated and lead to fraud.
She also called for increased safeguards against crypto scams that have resulted in significant financial losses. James emphasized the importance of robust federal regulations to prevent such scams and protect both New Yorkers and investors nationwide.
Keep Crypto Investments Separate from Retirement Funds
James cautioned against including digital assets in retirement accounts like IRAs, citing the volatility and riskiness of cryptocurrencies. She argued that the extreme price fluctuations of Bitcoin make them unsuitable for retirement savings, especially for retirees relying on stable income. This warning comes as financial institutions like Fidelity begin offering crypto IRA options to clients.
In addition to investor protection, James highlighted the national security benefits of thorough crypto regulations. She pointed out that cryptocurrency transactions are often anonymous and used for illicit activities, underscoring the need for strict rules requiring crypto firms to register with regulators and adhere to anti-money laundering measures.
Featured image from Dado Ruvic/REUTERS, chart from TradingView
Source link
#Bitcoins #Impact #Alarming #Atty #GeneralCongress #Act
