New York Attorney General Calls on Congress to Strengthen Cryptocurrency Regulations
By Hannah Lang
April 10, 2025
In a bold move to enhance protections for digital asset investors, New York Attorney General Letitia James has urged Congress to establish a comprehensive federal regulatory framework for cryptocurrencies. In a letter addressed to key congressional leaders, including Senate Majority Leader John Thune and U.S. House Speaker Mike Johnson, James emphasized the pressing need for more stringent regulations in the rapidly evolving cryptocurrency landscape.
James’s appeal is particularly timely, following indications that Congress may soon pass legislation to regulate stablecoins, a type of cryptocurrency designed to maintain a stable value, typically pegged to the U.S. dollar. These digital currencies are often utilized by traders for transferring funds between various cryptocurrencies such as Bitcoin and Ethereum.
In her correspondence, Attorney General James proposed mandatory registration for crypto companies with a federal regulatory agency. She would also like to introduce minimum listing standards for all cryptocurrencies. Furthermore, James asserted that stablecoin issuers should establish a physical presence in the United States and deposit U.S. Treasuries and similar cash equivalents in American banks to ensure stability and accountability in the sector.
“Countless New Yorkers invest in cryptocurrency and digital assets, and more must be done to protect them and their money,” James remarked. She highlighted the alarming number of investors who have fallen victim to scams and fraudulent activities, which could potentially be mitigated through heightened federal regulation. “Thousands of investors in New York and across the country have lost millions of dollars to cryptocurrency scams and fraud that could be prevented with stronger federal regulations," she added.
The push for enhanced regulation comes amid a growing influence from the digital asset industry in Washington, D.C., which invested over $119 million supporting pro-cryptocurrency candidates during the previous election cycle. There is a significant urgency in the matter, as the Biden administration, along with congressional leaders, appear keen on laying down a regulatory framework for cryptocurrencies. Former President Donald Trump has also expressed interest in reforming U.S. cryptocurrency policies, particularly targeting the swift passage of stablecoin legislation before the summer.
As discussions around cryptocurrency regulations gain momentum, the findings and recommendations outlined by Attorney General James may play a critical role in shaping future legislative efforts aimed at providing safeguards for investors and ensuring the integrity of the fast-growing digital asset market.
Reporting by Hannah Lang. Editing by Marguerita Choy.