🚨 BREAKING: Prosecutors Raise Red Flags Over the GENIUS Act
New York Attorney General Letitia James, along with four district attorneys, are warning that the GENIUS Act could unintentionally legitimize stablecoin-related fraud, according to CNN.
Prosecutors argue the legislation may give stablecoin issuers like Tether (USDT) and Circle (USDC) legal protection while reducing their incentive to fully cooperate with law enforcement. They claim issuers can selectively freeze funds when it suits them—yet continue earning profits regardless.
One of the stark warnings:
Funds stolen in or routed through USDT could effectively never be frozen, seized, or recovered.
Critics say this loophole could make stablecoins a safer haven for illicit activity rather than a regulated financial tool. ⚠️
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