Altcoins News

Story: New York Prosecutors Fight GENIUS Act Over Stablecoin Fraud Powers

By Sydney TheCMO

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New York prosecutors struck back hard. District attorneys and Attorney General Letitia James warned that the GENIUS Act could cripple their ability to chase down cryptocurrency…

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On February 1, James and her team made it pretty clear they're not happy with Congress trying to shift oversight power away from states.

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"Restricting state-level enforcement could embolden wrongdoers," she said during a press conference.

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The GENIUS Act wants to create a new regulatory framework that basically hands most oversight power to federal agencies instead of letting states handle things.

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Industry folks can't agree on this either.

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Some crypto companies actually want the GENIUS Act because they're hoping for clearer federal rules that apply everywhere.

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The New York prosecutors' pushback adds serious pressure on lawmakers who are still divided on the issue.

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Stablecoins create a weird regulatory puzzle. They offer benefits like cheaper transaction costs, but their anonymity features can hide fraudulent schemes.

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Some lawmakers seem open to changing the Act. They've suggested possible amendments to address state enforcement concerns, but no consensus has emerged yet.

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More legislative discussions are coming soon. Lawmakers want to hear from both industry players and enforcement agencies before making final decisions.

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The GENIUS Act awaits committee review in the coming weeks, and stakeholders are watching closely. The outcome could completely reshape how stablecoins get regulated in America.

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No timeline exists yet for a final vote. That uncertainty makes it hard for both regulators and crypto firms to plan ahead.

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James keeps pushing her message about needing robust tools to fight fraud. "Our ability to protect consumers must not be weakened," she said in a recent statement.

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The Commodity Futures Trading Commission jumped into the fray too. On January 30, CFTC Chair Rostin Behnam said federal oversight is needed but acknowledged concerns about state…

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Senator Elizabeth Warren, who's been vocal about crypto problems, expressed support for the GENIUS Act on February 2.

The Currency Analytics

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