AG James sent a letter to congressional leaders urging them to pass federal legislation to strengthen regulations on cryptocurrencies and digital assets. In her letter, Attorney General James warns that the lack of strong federal regulations on cryptocurrencies increases the risk of fraud, criminal activity, and financial instability. Attorney General James argues that federal regulations would bolster America’s national security, strengthen its financial markets, and protect investors from cryptocurrency scams, which now account for 10 percent of all financial fraud and 50 percent of all losses from financial fraud. To better protect cryptocurrency investors, Attorney General James urges Congress to pass legislation that would require cryptocurrency companies to make a series of commitments, including registering with a regulatory body and actively identifying and preventing fraud and scams. This letter comes after the U.S. Department of Justice announced the dismantling of federal criminal cryptocurrency fraud enforcement, making a robust regulatory framework all the more critical.

“Countless New Yorkers invest in cryptocurrency and digital assets, and more must be done to protect them and their money. Thousands of investors in New York and across the country have lost millions of dollars to cryptocurrency scams and fraud that could be prevented with stronger federal regulations. I am urging Congress to pass legislation that would strengthen federal regulations on the cryptocurrency industry to protect investors, strengthen financial markets, and stop fraud.”- AG James