New York Attorney General Warns GENIUS Stablecoin Bill Lacks Protective Measures, Calls on US Congress to Postpone Passage to Enhance Regulatory Oversight
According to Coindesk, the New York Attorney General – Ms. Letitia James – has warned the US Congress that the National Innovation Guidance Stablecoin Act of 2025 (GENIUS Act), recently passed by the US Senate, is seriously lacking the necessary protective measures to protect US citizens from potential financial risks in the stablecoin market.
In an 8-page letter sent to Congress, Ms. James calls on federal legislators to temporarily halt the process of passing this bill and spend more time building a stricter legal framework. She emphasizes that financial innovation is necessary, but must be accompanied by strict oversight mechanisms to protect the banking system – which is admired worldwide – from negative impacts of unregulated digital assets.
In her latest proposal, the New York Attorney General has made a series of recommendations to extensively revise the GENIUS bill. Specifically, she requires all stablecoin-issuing organizations to be regulated and monitored like banks, while eliminating the issuance rights of non-bank institutions. She also emphasizes that stablecoin-issuing organizations must legally register in the United States to ensure transparency, accountability, and comprehensive oversight by authorities.
Ms. Letitia James's tough stance shows the increasing concern of US authorities about the rapid development of the stablecoin market – a part of the cryptocurrency ecosystem that could significantly impact financial stability if not effectively managed. Delaying the passage of the GENIUS Act to review key provisions could pave the way for a more stable and balanced legal framework between innovation and risk control in the digital financial sector.
