NY Attorney General urges Congress not to encrypt pensions – “No intrinsic value”

New York Attorney General Leticia James has written to US Congress leaders to encourage regulation of “common sense” federal codes and to maintain digital assets from US pensions.

“I am urging Congress to tighten federal regulations in the cryptocurrency industry to protect investors, strengthen financial markets, and stop fraud,” James said in a 14-page letter shared on April 10 that he outlines six key risks when the sector is not regulated.

Without proper protection, she said, “unidentified spread of digital assets” would undermine control of the US dollar, weaken national security due to criminal conduct, and “harm the stability of financial markets.”

Unregulated cryptography also imposes investors “price manipulation and equipped markets” and encourages fraud “emissions billions of dollars from hardworking Americans and extracts assets and investments from the American economy,” she said.

James made many recommendations and pushed Congress to require Congress to support the existence and regulatory oversight of the United States with US dollars or Treasury departments and stubcoin support, for the legislation required for stubcoin issuers.

She also wants regulations that require the platform to work only with anti-money laundering-compliant entities, establish registration requirements for issuers and intermediaries, protect against conflicts of interest, promote price transparency, and require fraud prevention measures.

There are no crypto assets in the pension fund

Top New York lawyers also aired concerns about the inclusion of code in pension funds.

“Digital assets are inappropriate for retirement savings because of the highly resignable savings,” she said, arguing that they have no value.

“The underlying value of cryptocurrencies is unpredictable and is not determined by true price discovery because they do not have the essential value underlying the price.”

James also urged retirement funds investing in cryptocurrency trade funds, saying, “Unlike traditional exchange trade funds backed by stocks and bonds, cryptocurrency ETFs are at risk of permanent theft.

Related: US lawmakers reintroduce crypto resignation bill to support Trump's agenda

“We hope that Congress will also need action to mitigate the risks posed by the industry to American national security, financial stability and citizens as they propose legislation to take the mantle and manage the cryptocurrency industry,” James said.

The call for regulation is reportedly the US Department of Justice has reportedly reported the dismantling of the federal Criminal Cryptocurrency Fraud Enforcement Division.

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