A warning has been raised by prosecutors that the U.S. federal stablecoin law, the GENIUS Act, could leave financial fraud unchecked, Cointelegraph reported on Sunday, citing CNN.
According to the report, New York Attorney General Letitia James and four local prosecutors said the GENIUS Act could provide stablecoin issuers with a legal shield and be exploited for fraud. Critics also said Tether and Circle do not freeze criminal proceeds, obstruct law enforcement and pocket profits. Tether argued that it has no legal obligation to freeze or return all transactions even if USDT is used for fraud. Circle countered that it is doing its best to prevent financial fraud.
The GENIUS Act is a bill signed in July by U.S. President Donald Trump that provides a legal framework for stablecoin regulation.
Chi-gyu Hwang
delight@d-today.co.kr