New York Attorney General Letitia James has expressed concerns over the U.S. Senate's proposed stablecoin bill, the Guiding and Establishing National Innovation for U.S.
Stablecoins of 2025 (GENIUS) Act, stating that it lacks the necessary safeguards to protect the American public. In a letter to Congress, James advised lawmakers to slow down the legislative process and draft a bill that balances innovation with protection for the banking system. James has previously warned about the dangers of unregulated digital assets and has proposed several key principles for digital asset legislation, including regulating stablecoin issuers as banks and requiring them to be domiciled in the U.S. She also suggested that stablecoin issuers should be required to use digital identity technology to identify holders and prevent illicit activities such as sanctions evasion and money laundering.