NY AG Fears CLARITY Act Could Weaken State Crypto Oversight

New York Attorney General Letitia James has expressed concerns about the CLARITY Act's potential to weaken state powers in regulating the crypto industry.

The proposed legislation aims to clarify regulatory frameworks for digital assets, but James argues that it could shift authority from states to the federal government.

She warns that this shift could reduce consumer protections and make enforcement more difficult. State regulators have played a key role in taking action against crypto scams and unregistered businesses, according to James.