NY AG Urges Tougher Crypto Oversight Amid Rising Scam Complaints
New York Attorney General Letitia James has urged Congress to strengthen oversight of the cryptocurrency market in a bid to protect consumers and investors from scams. In written testimony submitted to the Senate Permanent Subcommittee on Investigations, AG James noted that cryptocurrency fraud complaints to her office have almost tripled over the last three years.
The increase is attributed in part to various scams, including 'pig butchering,' romance scams, and investment frauds often perpetrated by anonymous actors overseas. AG James argued that the CLARITY Act, which would shift oversight of digital assets to the CFTC, seeks to interfere with and preempt states' investor protection laws.
The AG also recommended that Congress bar elected officials and federal employees from regulating industries in which they or their immediate family members hold a financial interest. She proposed a two-year restriction on public servants engaging in such activities after leaving office, as well as disgorgement and civil penalties of $50,000 per violation.