New York Attorney General: The CLARITY Act May 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 stating that proposed federal legislation could weaken states' ability to investigate fraud and hold platforms accountable.
Letitia James said the Digital Asset Market Clarity Act would supersede state-level digital asset market regulation and transfer regulatory authority to the U.S. Commodity Futures Trading Commission (CFTC), thereby weakening state and local enforcement.
She disclosed that the number of crypto fraud complaints received by the New York Attorney General's Office has tripled over the past three years, with total reported losses approaching $500 million over five years.
She called on crypto platforms to comply with anti-money laundering, know-your-customer, and cybersecurity requirements, monitor suspicious activity and market manipulation, and hold platforms financially responsible when they fail to protect customers from fraud.
Letitia James said the Digital Asset Market Clarity Act would supersede state-level digital asset market regulation and transfer regulatory authority to the U.S. Commodity Futures Trading Commission (CFTC), thereby weakening state and local enforcement.
She disclosed that the number of crypto fraud complaints received by the New York Attorney General's Office has tripled over the past three years, with total reported losses approaching $500 million over five years.
She called on crypto platforms to comply with anti-money laundering, know-your-customer, and cybersecurity requirements, monitor suspicious activity and market manipulation, and hold platforms financially responsible when they fail to protect customers from fraud.
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