New York AG Warns Clarity Act Could Weaken State Crypto Enforcement
New York Attorney General Letitia James urged Congress to strengthen the Clarity Act, warning that the proposed federal crypto framework could override state investor-protection laws and limit authorities’ ability to prosecute fraud.
James called for stronger anti-money-laundering, know-your-customer and ethics provisions. She also argued that DeFi platforms should be required to cooperate with law enforcement and that transactions involving mixers or untraceable assets should face tighter restrictions.
The bill’s ethics rules remain a major political obstacle. Democrats want broader conflict-of-interest restrictions covering public officials and their families, particularly amid concerns over President Donald Trump’s crypto ventures.
Supporters, including major crypto industry groups and Franklin Templeton, say the legislation would provide clearer regulatory responsibilities and greater certainty for investors and businesses. However, the bill still needs at least 60 votes in the Senate and may face further delays as Congress approaches its August recess.
New York Attorney General Letitia James urged Congress to strengthen the Clarity Act, warning that the proposed federal crypto framework could override state investor-protection laws and limit authorities’ ability to prosecute fraud.
James called for stronger anti-money-laundering, know-your-customer and ethics provisions. She also argued that DeFi platforms should be required to cooperate with law enforcement and that transactions involving mixers or untraceable assets should face tighter restrictions.
The bill’s ethics rules remain a major political obstacle. Democrats want broader conflict-of-interest restrictions covering public officials and their families, particularly amid concerns over President Donald Trump’s crypto ventures.
Supporters, including major crypto industry groups and Franklin Templeton, say the legislation would provide clearer regulatory responsibilities and greater certainty for investors and businesses. However, the bill still needs at least 60 votes in the Senate and may face further delays as Congress approaches its August recess.