New York Attorney General: CLARITY Act Could Weaken State-Level Crypto Enforcement
2026-07-27 23:03
Odaily Planet Daily News: New York Attorney General Letitia James submitted written testimony to the U.S. Congress, urging stronger regulation of cryptocurrency companies and warning that proposed federal legislation could undermine states' ability to investigate fraud and hold platforms accountable.
Letitia James stated that the Digital Asset Market Clarity Act would preempt state-level digital asset market regulation and transfer oversight authority to the U.S. Commodity Futures Trading Commission (CFTC), thereby weakening state and local enforcement.
She disclosed that the New York Attorney General’s Office has seen a threefold increase in crypto fraud complaints over the past three years, with total reported losses over the past five years approaching $500 million.
She called on crypto platforms to comply with anti-money laundering, know-your-customer (KYC), and cybersecurity requirements, monitor suspicious activity and market manipulation, and be held financially responsible when they fail to protect customers from fraud.
Letitia James stated that the Digital Asset Market Clarity Act would preempt state-level digital asset market regulation and transfer oversight authority to the U.S. Commodity Futures Trading Commission (CFTC), thereby weakening state and local enforcement.
She disclosed that the New York Attorney General’s Office has seen a threefold increase in crypto fraud complaints over the past three years, with total reported losses over the past five years approaching $500 million.
She called on crypto platforms to comply with anti-money laundering, know-your-customer (KYC), and cybersecurity requirements, monitor suspicious activity and market manipulation, and be held financially responsible when they fail to protect customers from fraud.
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