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 has reported on cryptocurrency markets and blockchain infrastructure since 2020, bringing over six years of hands-on experience in the crypto industry built through daily tracking of markets, trends, and emerging blockchain developments. Specializing in Bitcoin on-chain analysis, institutional ETF flows, and digital asset price action, his work at Coindoo has been cited by other news agencies and consistently covers market developments with a focus on data-driven reporting across Bitcoin, Ethereum, Solana, and XRP. Over the years, Kosta has contributed to multiple crypto media outlets in different regions, authoring over 6,000 articles across the sector. His reporting spans cryptocurrency markets and the broader fintech industry, tracking not only price action but also the technological and regulatory forces shaping the ecosystem. To support his analysis, Kosta actively leverages on-chain data and metrics from leading platforms such as Santiment, Glassnode, and CryptoQuant, enabling deeper, evidence-based market insights. He believes in the power of transparency and the data that underpins the blockchain ecosystem. His academic background in Marketing Management from Denmark further complements his analytical approach, adding a strong understanding of communication strategy and content positioning to his work.
