New York AG Warns Federal Crypto Bill Could Weaken State Oversight, Citing $500M in Losses

New York Attorney General Letitia James warned in testimony submitted to a Senate investigative panel that proposed federal cryptocurrency legislation could weaken state oversight and make it harder for regulators to pursue scams and hold digital asset platforms accountable. James said complaints about cryptocurrency fraud received by her office have tripled in the past three years, with reported losses over five years totaling nearly US$500 million. She urged tougher compliance rules, stronger market monitoring, and greater liability for platforms that fail customers, including mandatory anti-money laundering and know-your-customer standards.
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