New York Attorney General Letitia James has urged Congress to pass more regulations to govern the cryptocurrency sector on a federal level. As she has explained, these laws are needed, especially as the industry continues to grow, to protect investors and offer proper guidance.
Crypto More Relevant Than Ever
The last few years have especially seen many developments in the crypto space, including its use under Industries. Take its application in the gambling sector, for example. In the past, fiat currency was the only option for consumers looking to place wagers, but now, cryptocurrency is a part of the equation. As Andjelija Blagojevic has explained, crypto-friendly casinos are more common these days, with each of them providing users with bonuses and freebies, along with large game libraries and quick transactions.
Now, in a letter to congressional leadership, such as Senate Majority Leader John Thune and U.S. House Speaker Mike Johnson, she has suggested that crypto companies should have to register with a federal regulatory agency. On top of this, she suggests that there should be a minimum listing standard for crypto tokens. As it stands, the crypto industry is only semi-regulated, as no one can stop anyone else from launching their own cryptocurrency and selling it to the public.
While the debate rages on about whether cryptocurrencies are securities and as their impact on consumers only grows, James believes that a uniform standard needs to be set. This comes at another interesting time as Congress is looking to pass a bill that would regulate the development and issuance of stablecoins. Stablecoins have held a unique place in the crypto sector as they offer exposure to cryptocurrency while also being pegged to fiat currencies like the US dollar or traditional assets.
James has also weighed in on this, suggesting that stable coin issuers should have a presence in the United States and that their underlying assets should be put in American Banks. This comes after years of accusations from major stablecoin issues like Tether from critics who don’t believe that their tokens are truly backed up.
A Better-Regulated Industry
A look at the crypto scene will show that there has been a bigger influx of crypto-related laws and overall attention from regulatory bodies. This comes as the Trump administration seems to be especially fond of cryptocurrency, hosting the first ever crypto summit at the White House earlier this year. The Securities and Exchange Commission, which saw a shake-up in leadership, also dropped several high-profile lawsuits against companies in the crypto space. But beyond giving the space a chance to flourish, there is a bigger concern about the limits of its power.
For example, a lawmaker has proposed that public office holders be banned from releasing cryptocurrencies in the wake of the Trumpcoin fiasco. Now, James is proposing that federal regulation be passed that will ensure that crypto assets, the companies that issue them, and the consumers investing in them are treated the same across the United States.