New York Attorney General Calls for Stronger Federal Crypto Regulations

The regulations surrounding cryptocurrency in the U.S. have been a widely discussed topic ever since digital currencies started gaining mainstream attention.

Now, New York Attorney General Letitia James has called for stronger federal crypto regulations, emphasizing the need for better protection for investors.

This marks her next move after leading a series of high-profile enforcement actions against crypto firms accused of fraud.

Cryptocurrency in the U.S.

The adoption of cryptocurrency in the U.S. continues to grow. More and more platforms now accept payments in digital currencies, with digital products like streaming subscriptions and software licenses commonly being purchased using crypto.

Cryptocurrencies have also emerged as a popular payment method in online casinos due to the enhanced convenience and speed they offer. Gambling sites with Solana are available to players across the U.S. and continue to grow their user bases at a rapid pace.

Digital currencies also continue to be an extremely popular investment option for Americans. Many view tokens such as Bitcoin and Ethereum as long-term stores of value and potential hedges against inflation. They also trade them actively in pursuit of short-term gains.

Young and tech-savvy people are becoming more involved in crypto projects as they look to enter the industry and make a profit, increasing the need for a more comprehensive regulatory framework in the U.S. is becoming more urgent.

Lawmakers are now acting on it as they push for stronger federal crypto regulations.

A Call for Stronger Regulations

In her letter to Congress, General Attorney Letitia James has urged lawmakers to establish stronger regulations on cryptocurrencies and digital assets.

Her stance is that the U.S. needs to provide better protection against cryptocurrency scams, which continue to be a major problem in the crypto world.

In September 2024, the FBI reported that crypto scams in the U.S. amounted to $5.6 billion in 2023.

James, in her letter, stated the personal stakes for millions of Americans, both in New York and across the country are extremely high. Her stance is that those investing in crypto are in constant danger from crypto scams and fraud.

She stated that thousands of New York investors have already fallen victim to these frauds, resulting in millions of dollars in losses. James also emphasized the importance of swift actions to reduce the risks and create a safer environment for them to trade in.

In the letter, she suggested requiring crypto companies to register with a federal agency and setting clear baseline standards in place for which tokens can be listed.

The push for stronger crypto regulations is getting support in Washington as crypto is becoming a more significant political force. Reuters reported that the industry spent around $245 million in the 2024 elections, supporting pro-crypto candidates.

As the role of digital currencies in politics increases, they’ll garner more attention from lawmakers. President Donald Trump has been advocating for broad changes to U.S. crypto policies for quite some time.

His key advisor on digital assets, Bo Hines, also said that the White House is hoping to pass a new stablecoin bill before August.

Letitia James’ Crypto Lawsuits

Attorney General Letitia James has been acting as a prominent figure in the regulation of the cryptocurrency industry, leading a series of enforcement actions aimed at protecting investors and ensuring compliance with financial laws.

In January this year, James filed a lawsuit that aimed at recovering $2.2 million in frozen stablecoins from an alleged ring of scammers targeting New Yorkers looking for remote work. Her lawsuit was designed in a way to be airdropped into the scammer-controlled wallets, marking the first time this method will be used to serve a lawsuit in the U.S.

She previously filed a lawsuit against NoveTechFx and AWS Mining in June 2024. The companies were accused of running illegal pyramid schemes that defrauded hundreds of thousands of investors, including 11,000 of those from New York.

Her office also secured a $2 billion settlement with Genesis Global Capital in May 2024, resolving allegations that the company misled investors about the risks associated with its Gemini Earn program. As a result, a victim compensation fund was established, and the company was forced to shut down its operations in New York.

Conclusion

As more people invest in crypto and use it in their everyday lives, there’s no doubt that the discussions over laws and regulations will continue. Lawmakers will look to bring stability to the market and provide better protection for investors in attempts to fight crypto scams and fraud.