NY Attorney General Proposes Crypto Regulatory Expansion

  • Letitia James, the New York Attorney General, is proposing a new bill that would give state regulators more power to oversee cryptocurrency. This comes after legal action was taken by James against companies like Celsius, CoinEx, and Nexo for alleged violations.

New York’s Attorney General, Letitia James, has proposed a bill that would give the Department of Financial Services more power to regulate digital assets. If the bill passes, cryptocurrency exchanges would have to compensate customers for losses resulting from fraud. Media reports suggest that this could lead to stronger consumer protections in the cryptocurrency industry.

Letitia James, the New York Attorney General, has recently taken legal action against several cryptocurrency companies, including Celsius, KuCoin, and Nexo. She argues that some cryptocurrencies should be considered commodities or securities, even though the current laws around this are unclear. If the proposed bill passes, James would have additional powers to enforce regulations on the cryptocurrency industry. Reports from the Wall Street Journal and Bloomberg suggest that this could lead to more clarity and oversight in the industry.

In March, Letitia James took legal action against KuCoin, alleging that some of the tokens they offered, such as ether (ETH), should be considered securities and therefore should have been registered with her office. She made similar claims about the LUNA token, which is associated with the now-defunct stablecoin terraUSD, in a case against CoinEx.

For the bill to become a law, it still needs to be approved by state lawmakers.