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New York Attorney General Criticizes GENIUS Act
In a strongly worded letter to congressional leaders, New York’s Attorney General Letitia James has expressed her deep concern over the proposed GENIUS Act. The legislation aims to limit state-level regulation of digital assets, sparking backlash from several state officials.
Attorney General James has vehemently condemned the bill, warning that it would undermine states’ ability to pursue crypto-related fraud and misconduct. She emphasizes that New York’s BitLicense framework and other oversight tools have played a vital role in safeguarding investors and prosecuting bad actors. According to her statement, the GENIUS Act would effectively “tie the hands of state regulators just as we are beginning to hold this lawless industry accountable.”
The Attorney General further asserts that the bill would weaken states’ authority to protect their citizens from deceptive and abusive practices in the crypto industry, thus rendering consumers more vulnerable. Her sentiments echo those of other state officials who have voiced concerns about the proposed legislation.
The GENIUS Act, sponsored by Reps. Trey Hollingsworth (R-IN) and Darren Soto (D-FL), seeks to streamline crypto oversight by vesting primary regulatory authority with key federal agencies. Proponents argue this would provide clarity for companies and reduce the compliance burden from a patchwork of state laws. However, critics contend that the bill prioritizes industry players over public protection, particularly in jurisdictions like New York that have led enforcement efforts.
The Senate has already approved the GENIUS Act by an overwhelming 68–30 vote, paving its path to the House for further review and potential alignment with the STABLE Act counterpart. While many digital asset firms have welcomed the bill as a step toward clearer national standards, others remain cautious; industry analysts point out that support for federal preemption often stems from frustration with strict licensing and compliance rules in states like New York.
In her statement, Attorney General James emphasized, “We cannot allow Washington to invite another wave of fraud by sidelining the states.”
Source: fullycrypto.com
