Letitia James Demands Stronger Crypto Regulations

Crypto investors need stronger protection, according to New York Attorney General Letitia James, who on Thursday called on Congress to create a federal regulatory framework for digital assets.

In a letter to Senate Majority Leader John Thune and House Speaker Mike Johnson, James urged lawmakers to require that all crypto companies register with a federal agency, implement minimum listing standards, and place tighter controls on stablecoin issuers.

Her warning comes as stablecoin legislation is gaining bipartisan traction, with a potential bill expected before August.

Stablecoins in the Spotlight

Stablecoins are a cornerstone of today’s crypto ecosystem, offering a dollar-pegged digital token that facilitates seamless transfers between cryptocurrencies like Bitcoin and Ether.

James called for rules requiring issuers to:

• Maintain a U.S. presence
• Back coins with U.S. Treasuries or cash equivalents
• Deposit reserves in U.S.-based banks

These safeguards, she argued, would dramatically reduce the risks for investors.

“Countless New Yorkers invest in cryptocurrency and digital assets, and more must be done to protect them,” said James.

Crypto Influence Grows in Washington

The crypto industry is no longer sitting on the sidelines. After spending over $119 million on pro-crypto candidates during the 2024 elections, digital asset firms have found a more welcoming tone from President Donald Trump.

Trump’s Council of Advisers on Digital Assets, led by Bo Hines, has made clear that the administration wants a stablecoin bill passed by August.

From State Oversight to Federal Action

Letitia James has aggressively prosecuted crypto fraud cases in New York but says stronger federal oversight is critical. Her concerns reflect growing unease over scams and bankruptcies that have plagued investors across the country.

In recent years, crypto collapses have cost Americans billions, prompting states to act — but national regulation has lagged behind.

What’s Next for Crypto Policy?

As the crypto sector matures, U.S. regulators and lawmakers must balance innovation with investor protection. If Congress moves forward with a stablecoin bill, it could become a foundational moment for broader federal crypto regulation.

James’ call adds more weight to the urgency for action.