New York prosecutor criticizes GENIUS bill for allowing stablecoin issuers to profit

New York State Attorney General Letitia James, along with Manhattan District Attorney Alvin Bragg and five other prosecutors, jointly wrote a letter pointing out that the GENIUS Act, signed in July last year, failed to effectively protect victims of fraud and provide legal cover for stablecoin issuers to profit from fraud. The letter specifically named Tether and Circle, accusing the two companies of not performing well in assisting law enforcement agencies in seizing and returning funds, and profiting from investing in frozen stolen funds. According to reports, Circle and Tether each earned approximately $1 billion in 2024 through investment reserves, with Circle's frozen funds exceeding $114 million as of November last year.