NY AG Warns CLARITY Act Could Weaken Crypto Enforcement
New York Attorney General Letitia James has expressed concerns that the proposed Digital Asset Market Clarity Act could weaken state-level enforcement of cryptocurrency regulations.
According to James, the bill would override state regulation and centralize oversight under the Commodity Futures Trading Commission (CFTC), potentially making it harder for states to pursue scams in the digital asset market.
In her written testimony to the Senate Permanent Subcommittee on Investigations, James reported that complaints about cryptocurrency scams received by her office have tripled over the past three years, resulting in nearly $500 million in consumer losses over five years.
She urged Congress to ban the conversion of mixer-linked or otherwise untraceable cryptocurrencies into U.S. dollars and preserve existing state money transmission, commodities, and securities laws.