The New York Attorney General, Letitia James sent a letter to the leaders of the US Congress urging the federal regulations of “common sense” and to keep digital assets away from American pensions.
“I urge the congress to adopt legislation that would strengthen federal regulations on the cryptocurrency industry to protect investors, strengthen financial markets and stop fraud,” said James in a pages of 14 letter common On April 10, describing six major risks if the sector remains unregulated.
She said that without appropriate guarantees, the “uncontrolled proliferation of digital assets” undermines the domination of the US dollar, weakens national security due to criminal activity and “undermines the stability of the financial markets”.
The unregulated crypto also submits investors to “price manipulation and rigged markets”, facilitates fraud that “drains billions of dollars from workers and extracts from the assets and investments in the American economy,” she said.
An extract from James’ letter at the Congress. Source: New York State Prosecutor’s Office
James made a certain number of recommendations and pushed the congress to legislation that would oblige stablecoin issuers that they have an American presence and regulatory surveillance and a mandate for supporting stablecoins with dollars or American treasury vouchers.
It also hopes that the regulations require that platforms only operate with anti-white laundering entities, establish registration requirements for issuers and intermediaries, protect themselves against conflicts of interest and promote prices transparency and require fraud preventive measures.
No cryptographic assets in pension funds
The best lawyer in New York also disseminated his concerns about the inclusion of the crypto in pension funds.
“Digital assets are only unsuitable for retirement savings because of their high volatility,” she said, saying that they had no value.
“The underlying value of the cryptocurrency is unpredictable and not determined by a real price discovery because they have no intrinsic value on which their prices are based.”
James also urged retirement funds to invest in Crypto-Tracking Stock Exchange, declaring that “unlike traditional stock market funds supported by shares and bonds, cryptocurrencies held in cryptocurrency ETF are at risk of permanent flight.”
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“While the congress takes the mantle to propose legislation governing the cryptocurrency industry, we hope it also takes measures to mitigate the risks posed by the national security industry, to the financial stability of America and to the citizens,” said James.
The appeal to regulations follows the disassembly reported by the United States Ministry of Justice of its federal division of criminal cryptocurrency fraud.
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