NY prosecutors raise alarm over GENIUS Act on fraud: Report

Five New York officials reportedly said Tether and Circle had been incentivized to not work with law enforcement, allowing them to profit off crimes involving stablecoins.

Several New York district attorneys have reportedly warned about the US federal stablecoin law, the GENIUS Act, claiming it fails to adequately address fraud.

According to a Monday CNN report, New York Attorney General Letitia James and four district attorneys signed onto a letter saying that the GENIUS Act will “provide legal cover” for stablecoin issuers to potentially participate in fraud.

The letter reportedly pointed a finger at issuers Tether and Circle, claiming that the companies have profited off crimes in stablecoin markets, specifically accusing Tether of only freezing some suspicious transactions in USDt (USDT).

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