Research suggests that Bitcoin may pose a risk to the U.S. dollar’s global role, according to New York Attorney General Letitia James.
James has raised fresh concerns over Bitcoin’s growing global presence, warning that it may pose a serious threat to the dominance of the U.S. dollar.
In a detailed letter to congressional leaders titled Letter to Congress on Digital Asset Regulation, she urged swift and comprehensive federal regulation of digital assets, arguing that their unchecked rise could destabilize the financial system and encourage illicit activity.
America should defend the prime position of the U.S. dollar for global transactions—a position that Bitcoin, which can instantly transfer value globally, threatens.
Dollar Supremacy at Risk?, Supporting Evidence and Context
James specifically pointed out that Bitcoin is increasingly used for cross-border transactions, bypassing traditional fiat channels. This shift could erode the dollar’s central role in global trade and finance.
The letter also references broader implications, supported by a 2023 report from the U.S. Government Accountability Office, which notes:
Increased use and acceptance of digital assets in the future could contribute to the reduced dominance of the U.S. dollar in international financial markets, potentially eroding the strength of U.S. sanctions and limit their effectiveness in supporting U.S. policy goals.
Additionally, the letter warns:
Displacement of the dollar’s dominance by Bitcoin or any other currency will weaken the U.S. dollar and with it the ability for America to enforce its interests globally and to finance a robust economy.
Her concerns echo similar sentiments shared by BlackRock CEO Larry Fink, who recently described Bitcoin as a potential hedge against inflation and fiscal instability in the U.S.
Calls for Stronger Oversight and Consumer Protection
Letitia James emphasized the urgent need for regulation to prevent the criminal misuse of digital currencies. She advocated for clear registration rules, anti-money laundering (AML) compliance, and stricter enforcement to avoid manipulative practices.
As confirmed by a CNF post, a lawmaker claims that Trump aims to replace the U.S. dollar with his own stablecoin. The Trump administration is reportedly pushing a stablecoin bill by August, with incoming SEC Chairman Paul Atkins expected to bring a pro-crypto approach.
With crypto firms spending over $119 million this election cycle to influence Washington, the regulatory conversation is intensifying.
As of today, Bitcoin is trading at around $80,616.72, showing resilience amid regulatory scrutiny despite a 1.19% decrease in the past day. See BTC price chart below.