CLARITY Act would weaken state fraud powers, James warns
New York Attorney General Letitia James has urged Congress to revise the CLARITY Act, warning that the crypto market structure bill could restrict states from prosecuting fraud and enforcing investor protection laws. SummaryJames said the bill could preempt state investor protection lawsand weaken local enforcement.State and local authorities account for about 98.8% of arrestsnationwide, according to her testimony.Senate Republicans need 60 votesto advance the legislation through the cloture process.Banking, ethics and enforcement disputes remain unresolved before the Senates August recess. James challenges the CLARITY Acts enforcement rules James raised the concerns in written testimony submitted to a Senate committee as lawmakers continued negotiations over the federal crypto bill. She argued that the CLARITY Act would interfere with state investor protection laws and reduce the authority of state and local agencies to prosecute misconduct involving digital assets. “This is a mistake,” James wrote. The New York attorney general said state and local law enforcement agencies conduct most enforcement work across the United States. According to figures included in her testimony, those authorities are responsible for about 98.8% of arrests, compared with roughly 1.2% by federal agencies. You might also like: Metaplanet plans Bitcoin-backed bonds yielding up to 6% “Despite this, CLARITY would neuter state and local law enforcement by preempting