New York AG warns CLARITY Act could weaken oversight

• New York Attorney General Letitia James has urged Congress to reject parts of the CLARITY Act.
• James said the bill could weaken state powers to regulate the crypto industry.
• She warned the proposal may reduce consumer protections and make enforcement more difficult.

New York Attorney General Letitia James has urged US lawmakers to amend the CLARITY Act, warning it could limit states' ability to police the crypto industry.

James said the proposed legislation could shift regulatory authority to the federal government and weaken existing state enforcement powers.

James argued that state regulators have played a key role in taking action against crypto scams and unregistered digital asset businesses.

The CLARITY Act aims to create a clearer regulatory framework for digital assets by defining the roles of the Securities and Exchange Commission and the Commodity Futures Trading Commission.

The latest criticism highlights ongoing debate over how the United States should regulate Bitcoin (CRYPTO:BTC), digital assets and the broader crypto industry.

At the time of reporting, Bitcoin price was $63,248.71.