NY Authorizes Stablecoins as a Form of Bail: Assembly Bill 7024
- The bill followed General Attorney Letitia James’ proposal for crypto regulations.
- The authority promotes the establishment of digital assets, integrating them into the traditional financial system
New York has proposed the authorization of fiat-backed stablecoins, facilitating the acceptance of stablecoins as a valid form of payment for bail. The New York State Legislature introduced Assembly Bill 7024 on May 10, in an attempt to advance crypto-focused regulations with the objective of digital asset development.
Previously, on May 5, Attorney General Letitia James emphasized the urgent need for introducing “robust regulations” in the multi-billion dollar industry to protect crypto investors and the industry as a whole. Assembly Bill 7024 has been introduced following the proposal of the Attorney General, acknowledging the significance of establishing digital assets across the financial system.
The Attorney General asserted that the crypto regulations would bring more transparency in the crypto industry assuring the community its safety and privacy. James quoted:
New York investors should have the peace of mind that there are safeguards in place to protect them and their money…These commonsense regulations will bring more transparency and oversight to the industry and strengthen our ability to crack down on those that don’t pay respect to the law.
According to the new bill, the authority has decided to promote digital assets to be accepted widely, permitting the integration of digital currencies into the traditional financial sector. The bill, by altering the existing criminal procedure law, incorporates the digital asset class into the already accepted payment methods including cash, credit cards, and insurance.
The adoption of the new bill by the legislation provides insights into the nation’s enthusiasm for the establishment of digital currencies, and sets a precedent for other countries to adopt similar steps in mainstreaming cryptocurrencies.
Not everyone sees it this way, however. The crypto advocate attorney John Deaton expressed doubts that New York’s new regulations would be adopted more broadly in the United States, citing what he described as the “very politically motivated” Attorney General.