New York AG warns CLARITY Act could weaken state crypto enforcement
New York Attorney General Letitia James urged Congress to preserve state authority over cryptocurrency enforcement and reject federal legislation that could weaken oversight. In testimony to a Senate subcommittee, she said the Digital Asset Market Clarity Act would shift power to the CFTC and limit state investigations of scams and fraud. She cited a sharp rise in crypto scam complaints and nearly $500 million in reported losses over five years. James called for stronger anti-money-laundering, know-your-customer, cybersecurity, and suspicious-activity monitoring requirements for crypto platforms. She also urged making platforms financially liable for failing to protect customers, blocking conversion of mixer-linked or untraceable crypto into dollars, and preserving existing state money transmission, commodities, and securities laws.
