New York Attorney General Letitia James, along with several other attorneys general, has criticized the GENIUS Act, which took effect in July, for significant shortcomings in combating fraud and returning stolen funds. In a letter to Congress, they argue that the Act provides a "legitimacy endorsement" for stablecoin issuers without mandating the return of stolen funds to victims. The letter specifically names Tether (USDT) and Circle (USDC), accusing them of insufficient cooperation in freezing involved funds and assisting in their return, and suggests they may profit from investments of frozen or stolen funds. Both companies have responded, stating they will comply with law enforcement and emphasizing their commitment to compliance.