Letitia James Warns Clarity Act Would Weaken States' Ability to Police Crypto
New York Attorney General Letitia James has warned Congress that the proposed Clarity Act would weaken states' ability to police the cryptocurrency industry, urging lawmakers to tighten the legislation and add stronger anti-money-laundering and ethics safeguards.
James testified on Monday before the Senate Homeland and Governmental Affairs' permanent subcommittee, stating that the Clarity Act 'seeks to interfere with and preempt states’ investor protection laws as well as dilute our ability to prosecute fraud.'
She emphasized that state and local law agencies do the majority of law enforcement work in the country and urged Congress to ensure that when law enforcement looks to solve a crime, they have the tools to do so.
The Clarity Act would give enforcement authority to the Justice Department and include a sunset clause that would expire the restrictions in January 2029. James pushed for stronger language to address ethics concerns, suggesting that federal officials and employees be blocked from regulating industries they profit from when in office as well as a year after leaving public office.