New York Attorney General Letitia James has issued a direct call to Congress, urging lawmakers to establish a strong federal regulatory framework for the crypto industry. Her message is clear: without nationwide oversight, digital assets pose serious risks not just to investors, but to the United States’ financial system and global influence.
In her letter to congressional leaders, James pushed for federal rules that require crypto companies to register with a centralized regulatory agency. Such a move, she argued, would set consistent listing standards for crypto tokens and help close the current loopholes that allow companies to operate without clear accountability. The idea is not to stifle innovation, but to establish a baseline of consumer protection and market integrity.
A key element of her proposal is focused on stablecoins. James emphasized that issuers of stablecoins should be required to maintain a U.S. presence. She argued that onshoring stablecoin activity would help preserve the strength of the U.S. dollar and support the Treasury market. With Congress currently considering the bipartisan GENIUS Act legislation aimed at regulating stablecoins in payment systems James’ timing appears strategic, aiming to expand the regulatory conversation beyond just payment-focused tokens.
But James didn’t stop at consumer protection or financial infrastructure. She pointed to a bigger picture concern: Bitcoin’s growing role as an alternative financial instrument could eventually erode the dominance of the U.S. dollar. As Bitcoin gains traction in global markets, its potential to become a competing reserve asset could undermine America’s ability to assert its economic influence on the world stage. For a country that has long depended on the strength of its currency to support international policy and finance, this is a serious concern.
James also drew attention to the persistent issue of fraud and criminal behavior in the crypto space. She cited numerous instances where New Yorkers and other Americans have fallen victim to scams, losing millions of dollars in the process. From fraudulent token projects to social media-fueled pump-and-dump schemes, the digital asset ecosystem remains a fertile ground for manipulation due to a lack of coherent regulation. According to James, this regulatory gap is not just a local problem it’s a national one that demands federal action.
New York has already taken steps on its own. Back in March, lawmakers introduced a new bill aimed at tackling crypto fraud head-on, with a particular focus on high-profile rug pulls involving meme coins. These incidents highlight how quickly hype and speculation can be weaponized, especially when guardrails are weak or nonexistent.
The NY Attorney General’s appeal underscores the growing urgency felt among regulators and policymakers as crypto continues to evolve beyond niche circles into a foundational part of the financial system. As the U.S. debates how to handle this transformation, James’ proposal stands as a call for clarity, consistency, and protection both for investors and for the country’s broader financial and geopolitical stability.
Whether or not Congress acts on all her suggestions, the direction is clear. The days of the crypto wild west are numbered, and the next chapter is being written right now in legislative chambers. What gets decided in Washington in the coming months could shape the future of digital finance for decades to come.
