GENIUS Act Lacks ‘Necessary Guardrails’ For Investor Protection, NYAG Letitia James Tells Congress

Key Points

1. Letitia James sent an eight-page letter urging Congress to slow down the GENIUS Act, citing insufficient investor protections.

2. James highlighted the 'Tether loophole,' which allows foreign stablecoin issuers to operate without adequate oversight.

3. She emphasized the need for stablecoin issuers to be domiciled in the U.S. to prevent systemic risks to Treasury markets.

4. James warned against American markets being held hostage by foreign issuers and called for stricter compliance with U.S. regulations.

5. The Senate passed the GENIUS Act, while the House considers its own stablecoin bill, the STABLE Act.