New York Attorney General Letitia James has warned US Congress leaders about cryptocurrency regulations, particularly how Bitcoin and other cryptocurrencies erode the US dollar’s position around the world. She urged stronger federal regulations to protect investors from fraud and criminal use in the cryptocurrency market.
The best NY lawyers demand stricter cryptography restrictions
James highlighted the importance of the federal regulatory system of digital currency in Congress letters. She identified these types of currencies expose users to fraud and financial volatility due to lack of regulations.
Bitcoin is currently presenting a real threat to the domination of the dollar. James pointed out, in particular, as more businesses and individuals choose digital currency when sending money abroad.
Her concerns reflect BlackRock CEO Larry Fink’s concerns, suggesting that Bitcoin will serve as a hedge against the dollar amid the US financial challenges and rising inflation.
“Millions of New Yorkers are actively buying or selling cryptocurrency and other digital assets. They deserve further protection,” James wrote in her message.
New: This morning @newyorkstateag Leticia James wrote to Congress leaders @leaderjohntune, @senschumer, @speakerjohnson and @RepJefries It encourages you to pass the federal regulatory framework of digital assets and ease fraud, criminal activity and finances… pic.twitter.com/yjjdgbqdbt
– Eleanorterrett (@Eleanorterrett) April 10, 2025
Stablecoin protection measures and investor protection measures
The Attorney General has placed a special emphasis on stubcoin, a cryptocurrency that is fixed to stable assets such as the US dollar. She urged lawmakers to establish regulations that require Stablecoin issuers to have a US presence and support tokens in the US dollar or the Treasury.
James explained how stable things can facilitate the exchange of value between various cryptocurrencies, but if there is no regulation, you can manipulate them and create scams.
She also called for greater protection from crypto fraud that caused enormous financial losses. “Thousands of New Yorkers and investors across the country are losing millions of dollars to cryptocurrency fraud and fraud that can be avoided with more robust federal regulations,” James said.
Please remove codes from retirement funds
James actually warned against having digital assets in retirement accounts like the IRA. She argued that cryptocurrency is too volatile and risky for retirement savings plans, citing extreme price fluctuations in Bitcoin as evidence of instability that can damage the financial well-being of retirees who rely on savings in particular. This is because financial institutions like Fidelity have begun offering Crypto IRA options to clients.
In addition to investor protection, James also argued that thorough crypto regulations would strengthen national security. She explained that cryptocurrency purchases are usually anonymous and used for criminal activity, so it is necessary to implement strict rules that require governments to register with regulators and adhere to anti-money laundering protocols.
Dado Ruvic/Reuters featured images, TradingView chart
