New York AG Letitia James Criticizes GENIUS Act for Investor Protection Gaps
New York Attorney General Letitia James criticized the U.S. Senate’s stablecoin bill, the GENIUS Act, calling it insufficient in protecting the public. She urged Congress to slow down and ensure legislation enhances innovation while safeguarding the banking system.
Key points from James' letter:
- Stablecoin issuers should be regulated as banks.
- Non-bank issuers should be excluded from the bill.
- Issuers must be based in the U.S. to avoid loopholes for foreign issuers.
- Stablecoin issuance is tied to U.S. Treasury markets; control over issuers is crucial.
- Stablecoin holders should verify identities using digital credentials to aid law enforcement.
The Senate passed the GENIUS Act earlier this month, while the House has its own STABLE Act. Rep. French Hill noted significant differences between the two bills, leaving the outcome uncertain.