NY Attorney General Urges Congress to Block Crypto from Pensions and Tighten Industry Rules
Concerns over the unchecked growth of digital assets have prompted New York’s top prosecutor to press federal lawmakers for immediate action.
In a strongly worded appeal, Attorney General Letitia James is urging Congress to rein in the crypto industry before it further threatens the foundations of the U.S. financial system.
James warned that the continued absence of national regulation allows crypto markets to operate in a gray zone—one that exposes investors to manipulation, enables criminal finance, and potentially weakens the global standing of the U.S. dollar. According to her, these risks are not hypothetical—they are already unfolding in real time.
She also called for a complete firewall between cryptocurrency and Americans’ retirement savings. Citing high volatility and a lack of inherent value, James argued that digital assets are fundamentally incompatible with long-term pension planning. Crypto ETFs, she added, pose additional dangers due to the persistent threat of asset loss through theft.
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To address these issues, she outlined a set of federal reforms. Among them: mandatory oversight for stablecoin issuers, requirements for full dollar or Treasury reserves, and strict anti-money laundering compliance across the board. Transparency, conflict-of-interest protections, and clear registration pathways for crypto companies were also part of her proposed framework.
James’s intervention comes at a pivotal moment. While some federal agencies appear to be stepping back from crypto-related enforcement, she’s pushing in the opposite direction—calling for aggressive legislative action to protect the economy, national security, and individual savers from what she views as an increasingly dangerous sector.
Alexander Stefanov
Reporter at CoinsPress
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.
