The New York State Attorney General issued a strong call to the U.S. Congress to expedite the implementation of clear federal legislation on cryptocurrencies. She also warned against the integration of cryptoassets into retirement plans, highlighting the systemic risks these assets can pose for savers. This stance illustrates the authorities’ growing distrust of the crypto ecosystem, which is accused of being too unstable to be integrated into the country’s economic foundations.
A call for stronger national regulation
- Federal rules for a global market: The attorney general highlighted the lack of a unified national regulatory framework, which creates legal uncertainty and allows bad practices to flourish in certain states. She called for robust legislation to regulate issuers, platforms, and financial products related to cryptoassets.
- Consumer protection as a priority: The speech emphasizes fraud, market manipulation, and massive losses experienced by individuals. The objective is to establish clear standards to limit abuses and protect investors, while holding industry players accountable.
Categorical Rejection of Cryptocurrencies in Pension Funds
- No Bitcoin for Pensions: According to the prosecutor, integrating cryptocurrencies into pension plans would expose savers to extreme volatility. She calls for an explicit ban on all investments in digital assets in public or private pension funds.
- Worrying Precedents: Several companies and funds have considered exposing their clients to cryptoassets. New York’s appeal aims to curb this trend before it becomes a structural feature of the American financial landscape.
Opportunities and Risks of Strict Regulation
Opportunities:
- Create a safer environment for investors and institutions.
- Clarify legal obligations for crypto companies and encourage responsible innovation.
Risks:
- Excessive regulation could stifle innovation and force crypto startups to flee.
- Overly rigid legislation could slow the adoption of blockchain technologies by institutions.
Conclusion
The New York Attorney General’s statement highlights the growing tensions between technological innovation and the protection of savers. By calling for rapid federal regulation and the exclusion of cryptocurrencies from pensions, she opens the debate on the economic foundations of the digital age. While Congress is slow to act, pressure from states could well accelerate the arrival of national oversight of the crypto ecosystem.
