Trump-Backed GENIUS Act Under Fire: NYAG Urges Tougher Stablecoin Rules Before July Vote
2025-07-01 22:38:52
Main Idea
New York Attorney General warns that the GENIUS Act, a stablecoin bill backed by Donald Trump, lacks sufficient safeguards and could expose investors and the financial system to risks.
Key Points
1. The GENIUS Act, passed by the U.S. Senate, is the first comprehensive bill focused solely on stablecoins, requiring asset backing and reserve disclosures.
2. New York Attorney General Letitia James argues the bill needs stronger regulatory oversight, capital requirements, and safeguards against financial abuse.
3. James also criticizes the CLARITY Act, another crypto bill, for shielding bad actors and creating a weak regulatory framework favoring industry over investors.
4. Donald Trump has publicly endorsed the GENIUS Act, urging swift approval without additional amendments.
5. James warns that without stricter measures, the GENIUS Act could legitimize risky stablecoin issuers and undermine financial stability.
Description
New York Attorney General Letitia James has raised serious concerns over the recently passed GENIUS Act, warning Congress that the bill, in its current form, could leave investors and the U.S. financial system vulnerable. In a letter sent Monday to congressional leaders, James urged lawmakers to slow down the legislative process and implement stronger guardrails before finalizing any stablecoin regulations. Attorney General Calls GENIUS Act “A Danger to Investors, Economy, and National Security”...
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