New York AG Seeks Stricter Crypto Oversight Amid Rising Scam Losses

New York Attorney General Letitia James is pushing for tighter oversight of cryptocurrency companies in response to rising scam losses. In testimony submitted to a U.S. Senate investigations subcommittee, James noted that New Yorkers reported nearly $500 million in cryptocurrency scam losses over the past five years.

The number of scams reported to her office has tripled in three years, according to James' testimony. She criticized the Digital Asset Market Clarity Act, which would give oversight of digital assets to the Commodity Futures Trading Commission and override state regulation of digital markets.

James proposed stricter rules for cryptocurrency platforms, including anti-money laundering and customer identification requirements. She also called for restrictions on cryptocurrencies designed to conceal transactions, such as a prohibition on converting assets passed through money-laundering mixers into U.S. dollars.