As the US government appears to be starting to loosen its grip on the crypto industry, New York Attorney General Letitia James has issued a new warning to the sector. James, who recently announced NYAG Office’s $2 billion settlement with Genesis, strengthened his position on crypto companies over the weekend.
Play by the rules or otherwise…
Last week, the New York State Attorney General’s Office reached a $2 billion settlement with bankrupt platform Genesis Global Capital.
This development comes as part of the resolution of the lawsuit filed by the NYAG office in October 2023. This is the largest settlement against a crypto company in New York.
Following the settlement, New York Attorney General Letitia James committed to maintaining the office’s regulatory oversight of the industry and the office’s work to protect New York investors:
New York investors deserve the peace of mind that a properly regulated market provides, and that is something my office will always strive to achieve.
Over the weekend, James reinforced his position with industry companies on an X position. New York’s attorney general issued a new warning to the industry, telling all cryptocurrency companies operating in the state that they must comply like any other business.
New York Attorney General's statement. Source: Letitia James on X
According to the post, those who fail to follow the rules will be in the eyes of the attorney general’s office, which has obtained more than $2.5 billion in settlements from other platforms.
Crypto Investors Defy Industry Crackdown
James’ statement sparked backlash from American voters and crypto enthusiasts. In responses to his post, many criticized the attorney general’s decision to target cryptocurrencies and cryptocurrency companies in his warning.
An user Express concern regarding the message, stating:
If I lived in New York, I would bust my ass to find a way to move, like so many businesses and wealthy people have already done.
By the way, another answer interrogates the “rules” that James was referring to and where a state attorney general fits into this question:
What “rules” would these be? The SEC regulates public companies. The banking sector regulates part of the trade. How does a state AG fit into this? Late business registrations?
The user further challenged James’ position after the recent U.S. government U-turn. Recently, the Financial Innovation and Technology for the 21st Century Act, also known as FIT21, was passed. pass by the United States House of Representatives “with a very strong showing for Democrats,” as the message points out.
As reported by Bitcoinist, Democratic leaders opted not flogging the FIT21 vote last week, regardless of how senior executives feel about the pro-crypto bill.
Despite the uncertainty surrounding the results of the upcoming Senate vote, the Biden administration’s shift, seemingly fueled by the industry’s positive response to Donald Trump’s support for cryptocurrencies, appears to have offered some hope to investors.
Ultimately, this change helps develop a clearer and more industry-friendly regulatory framework in the country.
Total crypto market capitalization is at $2.5 trillion in the weekly chart. Source: TOTAL on TradingView
Featured image from Unsplash.com, chart from TradingView.com
