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New York Attorney General Criticizes GENIUS Act
In a scathing letter to congressional leaders, New York Attorney General Letitia James has vociferously denounced the proposed GENIUS Act, contending that it would irreparably erode consumer protections in the digital asset space. This bold rebuke follows a recent Senate approval of the legislation, which is now set to be reviewed by the House.
James’s impassioned criticism centers on the act’s purported intent to centralize crypto regulation under federal agencies, thereby precluding states from taking decisive action against fraudulent activities and abusive practices in the burgeoning industry. While proponents of the GENIUS Act argue that it would provide much-needed clarity for companies by streamlining regulations, critics like James counter that this would come at the expense of crucial investor safeguards.
The New York Attorney General emphasizes that her state’s innovative BitLicense framework has played a pivotal role in shielding investors and prosecuting wrongdoers. Citing these achievements, she vehemently argues that the GENIUS Act would “tie the hands of state regulators just as we are beginning to hold this lawless industry accountable.”
James’ criticism comes at a time when the crypto landscape is undergoing rapid transformations, with key debates raging over regulatory authority and oversight. While some in the industry welcome federal preemption, others remain skeptical, noting that the strict licensing and compliance requirements imposed by states like New York have sparked frustration among firms.
As the debate over regulation reaches a fever pitch, James’s sharp rebuke serves as a stark reminder of the urgent need for clarity on this crucial issue.
Source: fullycrypto.com
