New York State Prosecutors Criticize the Genius Act, Pointing Out 'Illicit Profit Retention' by Stablecoin Issuers

According to a report by CNN, five prosecutors including New York Attorney General Letitia James and Manhattan District Attorney Alvin Bragg criticized the stablecoin regulation Genius Act, enacted in July last year, for failing to protect fraud victims and providing a legal cover for companies to profit illicitly. The prosecutors argue that while the Genius Act has legitimized stablecoins, it allows issuing companies to bypass crucial regulatory requirements needed to combat terrorist financing, drug trafficking, money laundering, and cryptocurrency fraud. The act introduced reserve requirements similar to those of banks, but it allows companies to withhold stolen funds from victims...