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NY Attorney General James calls for ban on crypto in pensions

NY Attorney General James calls for ban on crypto in pensions

GrafaGrafa2025/04/11 16:20
By:Isaac Francis

New York Attorney General Letitia James has urged Congress to pass legislation that would prohibit U.S. retirement funds from investing in cryptocurrencies or crypto exchange-traded funds (ETFs).

In a letter sent to congressional leaders on April 10, James outlined her concerns about the risks posed by digital assets, which she claimed have “no intrinsic value” and are unsuitable for retirement savings due to their high volatility.

James emphasised that the inclusion of cryptocurrencies in pension funds could expose investors to price manipulation, fraud, and theft, undermining financial stability and national security.

“Digital assets are uniquely unsuitable for retirement savings due to their high volatility. The underlying value of cryptocurrency is unpredictable and not determined by true price discovery,” she stated.

The attorney general also warned that crypto ETFs are at risk of permanent theft, unlike traditional ETFs backed by stocks or bonds.

Her recommendations included requiring stablecoin issuers to have a U.S. presence and regulatory oversight, mandating that stablecoins be backed by U.S. dollars or treasuries, and enforcing anti-money laundering compliance for platforms.

James argued that unregulated crypto markets drain billions of dollars from Americans and divert investments away from the economy.

She urged Congress to take action to mitigate the risks posed by the cryptocurrency industry while strengthening investor protections and financial market stability.

The call for regulation comes as debates over crypto’s role in retirement funds continue, with some policymakers advocating for its inclusion while others express caution due to its volatility and speculative nature.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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