ICYMI: Ahead of Market Structure Hearing, NY Attorney General James Warns Congress of Danger Crypto Poses With Inadequate Legislative Guardrails
“Any reasonable cryptocurrency regulation must contain measures protecting the public from such scams that can obliterate investors’ savings and destroy their lives.”
Washington, D.C. – Today, ahead of the Senate Banking, Housing, and Urban Affairs Committee’s hearing on “Building Tomorrow’s Digital Asset Markets,” New York Attorney General Letitia James submitted written testimony warning lawmakers about the danger crypto poses with inadequate legislative guardrails.
“Without systemic action, cryptocurrency frauds will only continue to grow unabated, ranging from romance scams, to job schemes, to affinity fraud, including religion-based scams,18 to investment frauds,” Attorney General James wrote.
She outlined potential dangers crypto poses to the financial system with inadequate legislative guardrails: “Given the extremely risky and volatile nature of digital assets, mom and pop retail investors expect—and deserve—enhanced protections. The public is harmed if these risky assets are governed by fewer protections than plain vanilla stocks and bonds. Congress should not introduce digital market structure legislation that attempts to undo the foundation of America’s economic engine—and takes us back to 1929.”
The testimony concluded: We urge Congress to ensure that any digital asset legislation includes appropriate guardrails to safeguard America’s investors, our economy, and our national security, including the preservation of state authority to protect our residents.
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