James Opposes Crypto Bill, Citing Risk of Leaving Scam Victims Without Protection

New York Attorney General Letitia James is opposing the Digital Asset Market Clarity Act, a bill that would give most crypto rulemaking to one federal agency, the Commodity Futures Trading Commission (CFTC). The bill, which has already passed in the House with a vote of 294 to 134, would also override state investor protection laws, something James cannot accept. She argues that taking away state power over securities and commodities would leave scam victims without their closest watchdog.

James cites four separate datasets showing increasing crypto losses: $11.4 billion in FBI Internet Crime Complaint Center data (up 22%), $1.78 billion in FTC Consumer Sentinel Network data (up 25.6%), TRM Labs' illicit volume estimate of $158 billion (up about 145%), and nearly $500 million in New York complaints over five years (almost tripled in three years). The average victim reported losing $62,604, according to the FBI.

James names real cases where scams were used through Haitian church prayer groups or Facebook ads targeting Russian speakers. She also points out that state and local agencies handle about 99% of US law enforcement bodies and 98.8% of arrests, while federal authorities handle roughly 1.2%. Washington has pulled back on crypto enforcement, with the Justice Department telling prosecutors in April 2025 to stop charging platforms for what their users do.