Circle Says It Prioritizes 'Financial Integrity' As Prosecutors Reportedly Allege Stablecoin Law Allows Crypto Companies To Gain From Fraud

New York’s leading prosecutors raised concerns about the new stablecoin legislation, citing weaker safeguards for fraud victims, according to a Monday report.Legal Backlash Against Stablecoin Bill?New York Attorney General Letitia James and four district attorneys signed a letter criticizing the GENIUS Act, reported CNN. They contend that the law lends an unwarranted sense of “legitimacy” to stablecoins, while allowing companies that issue these stablecoins to "avoid significant regulatory requirements” needed to combat financial crimes.Benzinga sought confirmation from the New York Attorney General’s office on the report. The prosecutors reportedly said that these requirements are vital in the fight against financing terrorism, drug trafficking and money laundering.They further alleged that the two leading stablecoin issuers, Tether (CRYPTO: USDT) and Circle Internet Group Inc. (NYSE:CRCL), have obstructed law enforcement efforts to seize and return funds to victims, all ...Full story available on Benzinga.com