New York Attorney General Letitia James is sounding the alarm over the Digital Asset Market CLARITY Act, warning that the proposed legislation could weaken state-level crypto enforcement and make it harder to prosecute fraud.
In testimony submitted to a U.S. Senate subcommittee, James argued that the bill could override state investor-protection laws, shift major oversight responsibilities to the CFTC, and limit the ability of state and local authorities to hold crypto platforms accountable.
📊 The numbers are alarming:
🔸 Crypto-scam complaints received by the New York Attorney General’s Office have reportedly tripled in three years. 🔸 Reported crypto-scam losses in New York totaled nearly $500 million over five years. 🔸 Investors have lost billions more through major crypto-company bankruptcies.
James is demanding tougher protections, including:
✅ Mandatory KYC and anti-money-laundering compliance ✅ Stronger cybersecurity requirements ✅ Transaction monitoring to detect manipulation and suspicious activity ✅ Accountability for DeFi platforms acting as intermediaries ✅ Restrictions on untraceable crypto processed through mixers ✅ Financial liability for platforms that fail to protect customers from fraud ✅ Stronger ethics rules preventing government officials from regulating industries they financially benefit from
Supporters of the CLARITY Act argue that America urgently needs clear and consistent federal crypto rules to protect consumers, provide regulatory certainty and keep blockchain innovation inside the United States.
But James’ warning raises a massive question:
⚠️ Will federal clarity strengthen the crypto market—or strip states of the power needed to stop scammers?
The battle over America’s crypto future is heating up, and the outcome could reshape regulation, enforcement and investor protection across the entire digital-asset industry.
Blockchain Association(ブロックチェーン・アソシエーション)、Crypto Council for Innovation(革新のための暗号協議会)、The Digital Chamber(デジタル・チェンバー)は共同で、上院の指導者に対し、CLARITY Actを直ちに審議の場に上程するよう求めています。