NY Attorney General Urges Federal Crypto Rules
NY Attorney General urges federal crypto rules to address fraud risks and enhance market stability through comprehensive regulations for digital assets.
In April 2025, NY Attorney General Urges Federal Crypto Rules, calling on Congress to establish comprehensive regulations for cryptocurrencies to protect investors and stabilize markets. She highlighted that the lack of uniform standards raises fraud, criminal activity, and financial instability risks. James urged crypto companies to register with a federal agency, set token listing standards, and require stablecoin issuers to maintain U.S. reserves.
Key Proposals for Strengthening Crypto Regulations
Attorney General James proposed several measures to enhance investor protection and market stability:
- Mandatory Registration: Requiring all cryptocurrency companies to register with a federal agency to ensure transparency and accountability.
- Stablecoin Oversight: Implementing minimum standards for stablecoins, including maintaining reserves in U.S. banks backed by cash equivalents like U.S. Treasuries.
- Investor protection: Tackling the rise in crypto scams, which now represent 10% of financial fraud and 50% of related losses.
Aligning with Broader Regulatory Efforts
These proposals align with ongoing congressional efforts to regulate digital assets, particularly stablecoins. The Biden administration, through advisors like Bo Hines, is pushing for a stablecoin bill to be passed by August. James’ initiative underscores the need for a cohesive regulatory framework to protect investors and maintain financial stability.
Conclusion: A Call for Unified Regulatory Action
Attorney General James’ call for federal cryptocurrency regulations emphasizes the need to address challenges in the rapidly evolving digital asset market. Establishing clear and comprehensive regulations is crucial to safeguard investors and uphold the integrity of financial markets. As lawmakers review these proposals, financial sector stakeholders are closely monitoring developments that will shape cryptocurrency regulation’s future.
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