New York Officials Warn About GENIUS Act and Fraud Risks

New York prosecutors express concerns that Tether and Circle may be incentivized to evade law enforcement, potentially boosting crime associated with stablecoins.

A report has surfaced indicating that five officials from New York have expressed significant apprehensions regarding the GENIUS Act, particularly its implications for cryptocurrency fraud. They allege that companies like Tether and Circle are being encouraged to avoid cooperation with law enforcement agencies, which could lead to increased criminal activity linked to stablecoins.

The potential consequences of this lack of collaboration could escalate the risks associated with fraud in the cryptocurrency sector, raising alarms for regulatory bodies and law enforcement alike.