New York Attorney General Letitia James has urged Congress to strengthen federal oversight of cryptocurrency markets, arguing that existing gaps leave consumers vulnerable to fraud and financial losses. In testimony submitted to the Senate Permanent Subcommittee on Investigations, James said cryptocurrency scams have cost Americans billions of dollars and noted that complaints received by her office have tripled over the past three years. The Office of the Attorney General also reported nearly $500 million in cryptocurrency scam losses over the last five years in New York alone.
AG James Warns Clarity Act Could Limit State Enforcement
A central focus of the testimony is the proposed Digital Asset Market Clarity Act (Clarity Act), which would shift much of the oversight of digital assets to the Commodity Futures Trading Commission (CFTC). James argues the legislation would preempt key state enforcement powers, making it more difficult for attorneys general and local law enforcement agencies to investigate cryptocurrency fraud and hold digital asset platforms accountable. The testimony points to several previous enforcement actions by the New York Attorney General’s Office involving cryptocurrency companies as examples of why preserving state authority remains important.
Testimony Also Addresses Transparency and Ethics
Beyond consumer protection, James called on Congress to adopt stronger transparency requirements for cryptocurrency markets and raised concerns about the use of digital assets in money laundering, bribery, campaign finance violations, and other illicit activity. She also urged lawmakers to prohibit elected officials and recently departed government employees from participating in cryptocurrency regulation if they have financial interests in the industry, citing potential conflicts of interest. Consumers with questions about cryptocurrency fraud or investor protections should consult their state attorney general’s office or the appropriate federal regulators for guidance.
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Amanda Blankenship is the Chief Editor for District Media. With a BA in journalism from Wingate University, she frequently writes for a handful of websites and loves to share her own personal finance story with others. When she isn’t typing away at her desk, she enjoys spending time with her daughter, son, husband, and dog. During her free time, you’re likely to find her with her nose in a book, hiking, or playing RPG video games.