New York Attorney General warns that the GENIUS stablecoin bill lacks safeguards, urging Congress to delay legislation and strengthen regulatory requirements

ChainCatcher news, according to Coindesk, New York Attorney General Letitia James has warned Congress that the "2025 American Stablecoin National Innovation and Establishment Act" (GENIUS Act) passed by the U.S. Senate "lacks the necessary safeguards to protect the American public."

In an eight-page letter, James urged Congress to slow down the stablecoin legislative process and "take the time to draft a bill that can promote innovation while protecting our globally envied banking system." In her latest letter, James proposed a comprehensive overhaul of the bill, starting with regulating stablecoin issuers as banks and disqualifying non-bank issuers. She also demanded that stablecoin issuers must be registered in the United States.