NY AG James Warns CLARITY Act Could Weaken State Crypto Oversight

New York Attorney General Letitia James has expressed concerns about the potential impact of the CLARITY Act on state powers to regulate the crypto industry. According to James, the proposed legislation could shift regulatory authority to the federal government and weaken existing state enforcement powers.

James argued that state regulators have played a key role in taking action against crypto scams and unregistered digital asset businesses. She warned that the bill could reduce consumer protections and make enforcement more difficult.

The CLARITY Act aims to create a clearer regulatory framework for digital assets by defining the roles of the Securities and Exchange Commission and the Commodity Futures Trading Commission.