Odaily Planet Daily reports that New York State Attorney General Letitia James and four local prosecutors recently wrote to several Democratic lawmakers criticizing the significant flaws in the “GENIUS Stablecoin Act” signed into law by Trump last year, particularly its failure to require stablecoin issuers to return stolen funds in cases of theft.
The letter specifically mentions Tether (USDT) and Circle (USDC), arguing that the two major stablecoin issuers can still earn interest on assets after theft, while victims lack effective recourse. The New York prosecutors point out that although the law grants stablecoins greater “legitimacy endorsement,” it does not simultaneously strengthen key regulatory requirements such as anti-terror financing, anti-money laundering, and crypto scam prevention.
The GENIUS Act is currently in the implementation phase, requiring stablecoins to be fully backed by USD or high-liquidity assets, and mandating annual audits for issuers with a market cap exceeding $50 billion. However, the New York authorities believe these measures are still insufficient to address the widespread use of stablecoins in illegal financial transactions.
According to Chainalysis data, approximately 84% of illegal crypto transactions in 2025 involve stablecoins. Based on this, New York is calling for further strengthening of the regulatory framework to better protect consumer rights.
Disclaimer: The information on this page may come from third parties and does not represent the views or opinions of Gate. The content displayed on this page is for reference only and does not constitute any financial, investment, or legal advice. Gate does not guarantee the accuracy or completeness of the information and shall not be liable for any losses arising from the use of this information. Virtual asset investments carry high risks and are subject to significant price volatility. You may lose all of your invested principal. Please fully understand the relevant risks and make prudent decisions based on your own financial situation and risk tolerance. For details, please refer to
Disclaimer.
Related Articles
USDT supply reaches a new all-time high of 188 billion USD, with 550 million users relying on payment savings
Tether CEO Paolo Ardoino announced on April 21 that the circulating supply of USDT has reached a new all-time high of $188.0 billion, further widening its lead over competitors and making it the third-largest crypto asset by market cap, trailing only Bitcoin and Ethereum. Ardoino emphasized that more than 550 million users in emerging markets currently rely on USDT for everyday payments.
MarketWhisper04-22 03:56
USDT supply hits fresh $188b ATH as Tether tightens grip on stablecoins
Tether CEO Paolo Ardoino says USDT supply has hit a record $188b, cementing the stablecoin's dominance as broader stablecoin liquidity sits near all-time highs.
Summary
Tether CEO Paolo Ardoino says USDT supply has reached a record $188 billion.
The new peak comes weeks after stablecoins hit a
Cryptonews04-21 16:19
Tether Issues 2B USDT on Ethereum in 3 Days
Gate News message, April 21 — According to Lookonchain monitoring, Tether issued 2 billion USDT on Ethereum over the past 3 days.
GateNews04-21 08:16
Scammers Pose as Iranian Authorities to Extort Stranded Shipowners in Bitcoin and Tether
Gate News message, April 21 — Unknown actors sent fraudulent messages to shipping companies with vessels stranded west of the Strait of Hormuz, claiming to be Iranian authorities and offering safe passage in exchange for fees paid in Bitcoin or Tether, according to Greek risk firm MARISKS. The messa
GateNews04-21 07:41
Tether Acquires 8.2% Stake in Antalpha, Gaining Exposure to Bitcoin Lending Platform
Tether-affiliated entities invested $25 million in Antalpha, acquiring 8.2% ownership at the IPO price of $12.80 per share. Antalpha, a fintech platform for Bitcoin mining, reported strong financials, but shares fell over 27% post-disclosure.
GateNews04-21 06:11
Tether buys Antalpha’s shares for an 8.2% stake; the chairman has voting and disposal rights
According to the Schedule 13D filing submitted to the U.S. Securities and Exchange Commission (SEC) on April 20, Tether holds 1,950,000 shares of the Bitcoin mining financial platform Antalpha through affiliated entities, representing a 8.2% ownership stake. Tether chairman Giancarlo Devasini has voting and disposition rights over the aforementioned shares.
MarketWhisper04-21 02:14
