Top Regulator Calls for Strengthened Oversight of Digital Currencies

New York Attorney General Urges Congress to Bolster Crypto Regulations

New York Attorney General Letitia James has called on Congress to strengthen regulations on the cryptocurrency market, warning that the lack of oversight is putting investors at risk.

In a letter to Congressional leaders, James highlighted the need for clearer guidelines on the use of digital assets, citing concerns over market manipulation, fraud and consumer protection. The New York Attorney General's Office has been investigating several cryptocurrency-related cases in recent years, including a high-profile case against a cryptocurrency trading firm accused of defrauding investors.

James urged lawmakers to pass legislation that would require cryptocurrency exchanges to register with the Securities and Exchange Commission (SEC) and comply with anti-money laundering and know-your-customer regulations. She also called for stricter guidelines on initial coin offerings (ICOs) and the use of digital assets in initial public offerings (IPOs).

The New York Attorney General's Office has been at the forefront of efforts to regulate the cryptocurrency market. In 2018, James announced that her office had launched an investigation into the use of cryptocurrencies by New York-based companies. The investigation was part of a broader effort to crack down on fraudulent activities in the cryptocurrency market.

James' letter comes as the cryptocurrency market continues to experience significant volatility. The price of Bitcoin, the most widely traded cryptocurrency, has dropped by more than 50% in the past year, sparking concerns over market manipulation and insider trading.

The New York Attorney General's Office has been working closely with other regulatory agencies, including the SEC and the Financial Crimes Enforcement Network (FinCEN), to address concerns over the use of cryptocurrencies. James' letter is the latest in a series of efforts by her office to push for greater regulation of the cryptocurrency market.