New York Attorney General Letitia James has issued a stern warning to crypto companies operating in the state. She emphasized that they must comply with the same regulations as any other business.
Settlement with Genesis
Recently, the NYAG’s office reached a $2 billion settlement with bankrupt platform Genesis Global Capital. This settlement was the largest against a crypto company in New York’s history.
James’s Stance
Following the settlement, James vowed to continue regulating the crypto industry and protecting New York investors. She stated, “New York investors deserve a properly regulated marketplace, and that is something my office will always act to achieve.”
Warning to Crypto Companies
James reinforced her position on Twitter, warning crypto companies that they must comply with the rules. She stated that those who fail to do so will face the consequences, as her office has already secured over $2.5 billion in settlements from other platforms.
Backlash from Crypto Enthusiasts
James’s statement has faced criticism from crypto enthusiasts and voters. Many have questioned her decision to single out cryptocurrencies and companies in her warning. Others have raised concerns about the lack of clear regulations in the industry and the role of state attorneys general in regulating it.
Shift in Government’s Stance
Despite James’s warning, there has been a recent shift in the US government’s stance on cryptocurrencies. The House of Representatives recently passed the Financial Innovation and Technology for the 21st Century Act (FIT21), which aims to create a clearer regulatory framework for the industry. This shift has given hope to investors that a more industry-friendly regulatory environment may be on the horizon.
