NY Attorney General Pushes for Tougher Stablecoin Rules Amid Pending U.S. Legislation
New York Attorney General Letitia James is urging Congress to strengthen two key stablecoin bills currently advancing through Washington, warning that their current frameworks leave Americans vulnerable.
In a letter to lawmakers, James criticized both the GENIUS Act in the Senate and the STABLE Act in the House for lacking sufficient safeguards.
The GENIUS Act, backed by the White House and expected to reach President Trump’s desk by August, would require stablecoins to be fully backed by cash or highly liquid assets, mandate audits for large issuers, and set rules for foreign stablecoin operators. The STABLE Act, meanwhile, offers a different regulatory path with more flexibility for state-level oversight but has yet to reach a full House vote.
James argued that both bills should go further—especially in treating stablecoin issuers more like traditional banks and requiring insurance protections for consumers. She also called for supervisory authority to be given to the Federal Reserve, citing its independence from political influence.
This marks James’ latest intervention in the stablecoin debate. In April, she warned against embracing foreign-backed tokens like Tether and advocated for keeping stablecoin operations within U.S. jurisdiction to support the dollar and Treasury markets.
“We support innovation,” James wrote, “but not at the expense of the financial system’s safety and the protection of everyday Americans.”
Alexander Stefanov
Reporter at Coindoo
Alex is an experienced financial journalist and cryptocurrency enthusiast. With over 8 years of experience covering the crypto, blockchain, and fintech industries, he is well-versed in the complex and ever-evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His approach allows him to break down complex ideas into accessible and in-depth content. Follow his publications to stay up to date with the most important trends and topics.
