New York Attorney General Letitia James has voiced strong concerns regarding the "GENIUS" stablecoin regulation bill, urging the legislature to reconsider its passage. She argues the bill lacks sufficient protections for American citizens and could expose the US market to undue influence from foreign stablecoin issuers. James warned about the potential dangers of dollar-pegged stablecoins issued abroad, suggesting they could hold the US market "hostage" if not properly regulated. To enhance security and transparency, she proposed incorporating digital identity credentials for stablecoin holders, allowing for better tracking and accountability. While the US Senate previously passed the GENIUS bill, Attorney General James' critique highlights the need for careful consideration and robust consumer safeguards before enacting stablecoin legislation. The debate around stablecoin regulation continues as policymakers grapple with balancing innovation and risk mitigation. ```