Altcoins News

Story: New York AG Letitia James Takes On Federal Crypto Bill Over 500 Million in State Losses

By Sakamoto Nashi

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What James Wants Congress to Mandate. Her testimony wasn't just a complaint. She brought a list.

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The Conflict-of-Interest Problem. One piece of James's testimony that's gotten less attention: she wants to bar elected officials…

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New York Attorney General Letitia James went to Washington and basically told Congress to back off.

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Crypto scam complaints to her office have tripled over the past three years. Reported losses tied to those scams hit nearly $500 million over five years.

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State enforcement isn't just redundant paperwork.

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She made that point hard. New York has been one of the few jurisdictions that's actually held crypto platforms accountable — not just issued guidance and hoped for the best.

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Her testimony wasn't just a complaint. She brought a list. James wants Congress to require crypto platforms to follow anti-money laundering rules, know-your-customer protocols,…

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She went further. James wants Congress to ban the conversion of mixer-linked or untraceable cryptocurrencies into US dollars.

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She also pushed hard to preserve existing state laws covering money transmission, commodities, and securities. Those aren't legacy rules that need replacing.

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Read also: New York Citys 31,000-Property List Puts Crypto Founders Home Addresses Online

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One piece of James's testimony that's gotten less attention: she wants to bar elected officials and former government officials from regulating crypto if they hold financial…

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And she's not wrong that the risk exists. When regulators or lawmakers have skin in the game, the incentive to look the other way on enforcement gets stronger.

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The broader tension here is jurisdictional. State regulators and federal agencies have been circling each other over crypto for years.

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She's also pointing to something the industry sometimes glosses over: the market is still changing fast, and regulations need to keep pace.

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More context: BitMEX Closes After 11 Years as Crypto ATM Losses Hit $124M and Clarity Act Stalls

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