New York Attorney General Sends Letter to Congress: GENIUS Stablecoin Act Lacks Investor Protections

According to a report by Jinse Finance, New York State Attorney General Letitia James has issued a warning to Congress, stating that the “Guiding and Enabling National Innovation for United States Stablecoins Act of 2025” (GENIUS Act), recently passed by the U.S. Senate, “lacks the necessary safeguards to protect the American public.” In an eight-page letter, James urged Congress to slow down the stablecoin legislative process and “take the time to draft a bill that can both foster innovation and protect our banking system, which is the envy of the world.” In her latest letter, James proposed a comprehensive revision of the bill, starting with regulating stablecoin issuers as banks and eliminating the eligibility of non-bank issuers. She also called for stablecoin issuers to be required to register in the United States.