NY AG James Opposes Clarity Act Over Crypto Scam Protections as 2025 Losses Hit $11.4B

According to testimony submitted to a Senate investigations panel on Monday, New York Attorney General Letitia James opposed the Digital Asset Market Clarity Act, arguing it would strip state regulators of fraud enforcement power and leave crypto scam victims unprotected.

2025 crypto-related losses surged to $11.4 billion according to FBI data, up 22% from 2024, with the FTC reporting $1.78 billion in complaints and TRM Labs estimating $158 billion in illicit volume. James noted state and local agencies handle 99.5% of criminal cases but the bill would transfer most crypto rulemaking to the federal CFTC, effectively negating state oversight. Coinbase is pushing for a Senate vote as early as August 3.