New York Attorney General Letitia James has urged Congress to enhance the current stablecoin and cryptocurrency legislation, asserting that the existing bills fail to adequately protect investors. In a letter to Congress, she criticized the STABLE Act and the GENIUS Act for lacking essential safeguards. James emphasized the need for legislation that fosters innovation while ensuring the safety of the banking system. Both bills aim to regulate stablecoins, with the Senate recently passing the GENIUS Act and a House Committee advancing the STABLE Act. She expressed concerns that the bills do not sufficiently address anonymous transactions, which could facilitate criminal activities and jeopardize national security. James proposed that stablecoin issuers be regulated like banks, require FDIC insurance for deposits, and implement digital identity technology to prevent misuse. Additionally, she highlighted the potential disadvantage stablecoins pose to local banks. James has previously criticized other crypto-related legislation and has actively opposed the integration of digital assets into retirement funds. Read more AI-generated news on: https://app.chaingpt.org/news