According to the official website of the New York State Attorney General’s Office, New York Attorney General Letitia James, on September 14, joined with the attorneys general of 17 other states, including Arizona and California, as well as the District of Columbia, to send a letter to Senator Tim Scott, Chairman of the U.S. Senate Committee on Banking, Housing, and Urban Affairs, and Ranking Member Elizabeth Warren, formally opposing the Digital Asset Market Clarity Act. The coalition warned that the bill would undermine states’ enforcement authority to combat cryptocurrency fraud and grant the SEC unilateral power superseding state registration agencies, potentially destabilizing existing state securities regulatory frameworks. FBI data shows that losses from cryptocurrency-related complaints reached $11.4 billion in 2025, a 22% increase year-over-year; New York State has reported nearly $500 million in losses from cryptocurrency fraud over the past five years. The attorneys general are urging Congress to revise the bill to explicitly preserve states’ enforcement and registration authority over digital assets and to strengthen enforcement coordination mechanisms between federal and state governments.
NY Attorney General James Joins 17 States in Opposing the Clarity Act
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Summary
On September 14, New York Attorney General Letitia James joined 17 states and Washington, D.C. in opposing the Clarity Act, a digital asset regulation bill. The coalition warned that the bill would undermine state enforcement efforts against crypto fraud and grant the SEC unchecked authority. FBI data reveals $11.4 billion in crypto-related losses in 2025, a 22% increase from the previous year. New York alone reported nearly $500 million in crypto fraud over five years. The states urged Congress to revise the bill to preserve state oversight and enhance federal-state collaboration. They also stressed the need for stronger anti-money laundering measures in digital asset regulation.
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