On July 3, 2025, New York Attorney General Letitia James sent a letter to the U.S. Congress, criticizing the GENIUS Act on stablecoins for lacking necessary protections, posing risks to investors and financial security. #GENIUSAct requires stablecoins to be pegged 100% to USD, annual audits for issuers over 50 billion USD, compliance with AML, and prohibits the misuse of reserve funds. However, James argues that the bill is too lenient, especially as it allows foreign entities like Tether to issue USD-pegged stablecoins, calling this the "Tether loophole" that threatens the U.S. market.

James proposed amendments: only banks should issue stablecoins, based in the U.S., applying digital identification for all transactions, and complying with capital standards and FDIC insurance like banks. She emphasized the need to protect community banks and the local financial system. Previously, James opposed the CLARITY bill for being insufficiently strong, but Chairman French Hill believes adjustments are still needed. The incident highlights regulatory disputes but boosts the potential of DeFi and blockchain.

Risk warning: Information is for reference only, not investment advice. #anhbacong