New York attorney general warns CLARITY Act could weaken state crypto enforcement powers

New York Attorney General Letitia James submitted testimony to the U.S. Senate warning that the proposed CLARITY Act could strip states of crypto enforcement powers and concentrate oversight in the federal CFTC, undermining fraud investigations and consumer protection despite a threefold rise in crypto fraud complaints over three years. She called for stronger platform compliance requirements (AML/KYC/cybersecurity), state authority preservation, and safeguards against regulatory conflicts of interest.

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