New York Attorney General Opposes CLARITY Act and Calls for Its Review

cryptonews.ruPublicado a 2026-07-28Actualizado a 2026-07-28

Resumen

New York Attorney General Letitia James opposes the CLARITY Act, warning it would limit state law enforcement's ability to combat crypto fraud. She cites a tripling of crypto-related complaints and $500 million in losses in New York over five years. James argues the Act undermines local authority to pursue bad actors and calls on Congress to enact stricter regulations instead. Her proposed framework includes enforcing AML and user verification rules, banning access for foreign companies, prohibiting conversion to dollars for untraceable assets, and requiring platforms to monitor and report suspicious activity. She emphasizes that state and local agencies handle most law enforcement and that the Act would weaken investor protections. The bill is currently in the Senate, with consideration delayed due to other priorities.

New York State Attorney General Letitia James stated that the Cryptocurrency Market Structure bill (CLARITY Act) would restrict the activities of law enforcement agencies at the state level, complicating the fight against fraud in the crypto sphere. In this regard, she called on Congress to introduce stricter regulations for this sector.

According to James, in New York State alone, the number of complaints regarding cryptocurrency fraud has tripled in recent years. Furthermore, the volume of losses from such activities over five years, according to the Attorney General's office, amounts to about $500 million. And this is only in the state of New York, she emphasized.

The Attorney General believes that the CLARITY Act would undermine the ability of local authorities to pursue criminals in this field and impose sanctions against unscrupulous counterparties. She also advocates for Congress to impose a complete ban on elected officials and recently departed government employees from regulating the crypto sphere.

Instead, she proposes passing a bill with the following points:

Require crypto companies to comply with anti-money laundering (AML), counter-terrorist financing, and user verification measures;
Create a closed market inaccessible to foreign companies;
Prohibit the conversion into dollars for those crypto assets whose origin cannot be traced, including privacy tokens;
A ban on exempting crypto assets from the provisions of money transmission, commodity, and securities laws;
Require crypto companies to monitor abnormal activity and report it;

Require platforms and intermediaries to protect Americans from fraud and scams, and hold them accountable for failing to meet this requirement.

"The CLARITY Act aims to interfere with and preempt state investor protection laws, as well as weaken our ability to pursue fraud. This is a mistake. The lion's share of law enforcement work in this country is done by state and local authorities," James summarized.

Also, in the Attorney General's opinion, the framework bill for the crypto market should aim for maximum transparency.

At what stage is the CLARITY Act currently?

The bill has been sent to the Senate for further consideration. If approved, the bill will return to the House of Representatives before being sent to the President for signature. However, as we reported earlier, consideration in the Senate has been postponed due to more pressing issues.

Read more about the initiative's progress:

The CLARITY Act has many opponents. Among them, for example, are Democrats who insist on including expanded ethics provisions in the bill.

end-content

Preguntas relacionadas

QWho is opposing the CLARITY Act and why?

ANew York Attorney General Letitia James is opposing the CLARITY Act. She argues it would limit the power of state-level law enforcement agencies, complicate the fight against cryptocurrency fraud, and undermine local authorities' ability to pursue offenders and sanction bad actors. She believes it interferes with and preempts state investor protection laws.

QWhat data did Letitia James cite regarding cryptocurrency fraud in New York?

ALetitia James stated that in New York State alone, complaints about crypto-asset fraud have tripled in recent years. Furthermore, over five years, losses from such activities total approximately $500 million, according to her office.

QWhat key measures does Attorney General James propose instead of the CLARITY Act?

AShe proposes legislation that would: 1) Obligate crypto companies to comply with AML, counter-terrorism financing, and user verification rules; 2) Create a closed market inaccessible to foreign companies; 3) Ban conversion to dollars for crypto-assets with untraceable origins, including privacy tokens; 4) Prohibit exempting crypto-assets from money transmitter, commodity, and securities laws; 5) Require crypto companies to monitor and report anomalous activity; 6) Hold platforms and intermediaries accountable for protecting Americans from fraud.

QWhat is the current legislative status of the CLARITY Act?

AThe bill has been sent to the Senate for further consideration. If approved there, it would return to the House of Representatives before being sent to the President for signing. However, Senate consideration has reportedly been delayed due to more pressing legislative priorities.

QWhat is the fundamental goal Letitia James believes a crypto market framework should aim for?

AAttorney General James believes that a framework for the crypto market should be aimed at achieving maximum transparency.

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