NY AG Warns Congressional Crypto Oversight Bill Would Weaken Enforcement
New York Attorney General Letitia James is urging Congress to tighten federal oversight of the cryptocurrency market. In written testimony submitted to Congress, she warned that proposed legislation known as the Digital Asset Market Clarity Act could weaken enforcement by pre-empting state-level rules and transferring key supervisory authority to the Commodity Futures Trading Commission (CFTC). James argued that this framework risks diluting the ability of state and local authorities to police misconduct.
The New York AG cited complaints related to crypto fraud filed with her office, which have tripled over the past three years. Reported losses have reached roughly $500 million over a five-year period. She called for stronger baseline requirements for crypto platforms, including 'anti-money laundering' controls, customer identification (KYC), and cybersecurity standards.
James also expressed concerns about President Trump's involvement in the cryptocurrency industry while influencing its regulation. Senator Chris Murphy has publicly stated that he would vote against the Clarity Act due to these concerns.