New York AG James Urges Congress to Regulate Cryptocurrency

New York Attorney General Letitia James has urged Congress to prioritize the creation of a federal regulatory framework for cryptocurrencies, emphasizing the urgent need for stronger protections for investors amid rising fraud and financial instability risks. In her letter to congressional leaders, she proposed that cryptocurrency companies be required to register with a federal agency and adhere to minimum standards for listing digital tokens to enhance transparency and security in the sector. James highlighted that current cryptocurrency scams constitute 10% of all financial fraud, stressing that stronger regulations could help prevent significant financial losses for investors. This call for action follows the Department of Justice's decision to dismantle its federal cryptocurrency fraud enforcement unit, making a robust regulatory framework even more critical. As the cryptocurrency industry continues to grow, James's advocacy reflects increasing political momentum for tighter regulations, particularly concerning stablecoins. Her letter serves as a reminder of the potential risks and the necessity for legislative action to safeguard consumers.