Letitia James Calls for Tougher Crypto Laws to Block Billions in Scams

New York Attorney General Letitia James is asking Congress to create stronger rules for cryptocurrency companies. Her goal is to stop the many scams that hurt everyday people and take away their money.

Why Stronger Rules Matter Now

Cryptocurrency scams are growing fast. In New York alone, reports about these scams have gone up three times in just three years. Over the last five years, losses from these scams reached almost half a billion dollars in the state. Across the country, people have lost billions more when big crypto companies went broke.

James says clear laws help everyone feel safe when they do business. Without good rules, big problems like financial crises can happen. She wants Congress to protect investors, the economy, and even national security.

The Problem with the Clarity Act

Congress is looking at a bill called the Digital Asset Market Clarity Act. This bill would give most power over digital assets to one federal group and stop states from making their own rules. James warns that this change would make it harder for states to catch and punish bad crypto platforms.

Her office has already done a lot of work to hold companies responsible. They took action against Tether, the biggest stablecoin issuer, for hiding big losses. They also got money back from platforms like Coin Café, Gemini, Genesis, and KuCoin after these firms broke New York laws or failed to keep investors safe.

More Transparency Needed to Stop Crime

James wants Congress to make crypto markets more open. This would help stop money from going to criminals, cartels, and even foreign enemies. Because many crypto deals cannot be traced to one person, it is hard to check if elected officials are telling the truth about their money or if bribes are happening.

This lack of clear records also makes it tough to follow rules about gifts from other countries or campaign money laws. James suggests that elected officials and people who just left government jobs should not help make crypto rules. This would keep them from watching an industry where they might still have money at stake.

Recent Wins Against Crypto Fraud

James has led many cases that show what strong state action can do. In one case, her team got more than five million dollars from a platform that pushed a fake investment plan. Another time, they stopped a scam aimed at Russian-speaking New Yorkers. She was also the first to send a legal notice by putting an NFT into wallets used by scammers.

In a big case from 2024, her office sued a trading company running an illegal pyramid scheme. The scheme took over a billion dollars from people around the world, including thousands in New York.

What Congress Should Do Instead

James asks lawmakers to pass a different kind of crypto bill. It should keep state powers strong, add clear tracking of deals, and protect regular investors from harm. She believes this approach will keep markets fair and stop future losses.

People who use or think about using cryptocurrency should stay alert. Checking rules and choosing platforms that follow the law can help avoid big problems. With better oversight, the crypto world can become safer for everyone.