NY AG Warns CLARITY Act Could Weaken State Crypto Oversight Powers
New York Attorney General Letitia James is warning that the CLARITY Act could weaken state oversight and enforcement powers in the crypto market.
In written testimony submitted to a U.S. Senate Permanent Subcommittee on Investigations, James expressed concerns that the bill could neutralize states' regulatory authority over digital asset markets and concentrate oversight power in the CFTC.
The Attorney General is not opposed to building a federal regulatory framework itself but stresses that the role of state governments must be preserved to protect consumers.
Citing a recent surge in crypto-related fraud cases, James noted that complaints related to crypto fraud received by her office have risen about threefold over the past three years, with reported losses totaling around $500 million.