New York AG Calls for Tightened Crypto Oversight at Federal Level
Pressure is mounting on U.S. lawmakers to introduce clear rules for the crypto industry, with New York Attorney General Letitia James calling on Congress to take action.
James urged the creation of a federal framework that would finally bring the chaotic digital asset sector under control.
Rather than allowing each state to fight its own battles, she argues the U.S. needs a national strategy to reduce fraud, limit criminal exploitation, and stabilize what remains a volatile and opaque market. According to James, crypto-related scams are becoming a central pillar of financial fraud—now responsible for half of all monetary losses linked to fraud cases and representing one out of every ten incidents overall. The total damages? An estimated $12 billion in 2024 alone.
James criticized the current regulatory vacuum, claiming it enables dishonest actors to manipulate prices and engage in deceptive practices without consequences. She believes that standardized federal laws could eliminate these loopholes, setting clear expectations for companies while shielding everyday investors from abuse.
Among her proposals is a requirement that stablecoin issuers be based in the U.S. and backed exclusively by reserves in dollars or U.S. treasuries. She also suggests that all intermediaries—from trading platforms to custodians—should be held to the same registration and compliance standards as traditional financial firms.
Her recommendations go further, calling for crypto to be excluded from retirement investment products and for transactions to be limited to platforms that meet anti-money laundering benchmarks. Greater transparency around pricing, accountability for conflicts of interest, and oversight across all operational layers would be key pillars of the envisioned reform.
Kosta Gushterov
Reporter at Coindoo
Kosta has been a part of the team since 2021 and has solidified his position with a thirst for knowledge, incredible dedication to his work and a "detective-like" mindset. He not only covers a wide range of trending topics, he also creates reviews, PR articles and educational content. His work has also been referenced by other news outlets.
