NY AG Warns Weak Crypto Regulations Could Enable Billions in Annual Scams

New York Attorney General Letitia James is urging Congress to strengthen cryptocurrency regulations, warning that proposed federal legislation could weaken states' ability to protect consumers from fraud.

Crypto scams cost Americans billions of dollars annually, according to James, who said complaints filed with her office in New York have tripled over the past three years, while reported losses have totaled nearly $500 million over five years.

The Digital Asset Market Clarity Act, currently under consideration by Congress, would place oversight of digital assets under the Commodity Futures Trading Commission. James argues that this legislation would override state regulations and restrict enforcement by state and local authorities.