New York Attorney General Letitia James has urged Congress to pass comprehensive federal legislation regulating cryptocurrencies, warning that the absence of nationwide standards is putting U.S. investors and markets at risk.
Why Is Federal Cryptocurrency Regulation Needed?
In her April 10 letter to congressional leaders, AG James emphasized the dangers of an unregulated cryptocurrency market:
- Crypto scams now account for 10% of all financial fraud
- 50% of total fraud-related financial losses stem from crypto scams
- Americans lost an estimated $12 billion in 2024 alone
James highlighted the urgency of establishing a national regulatory framework to replace the inconsistent patchwork of state laws currently in place. The letter follows the U.S. Department of Justice’s controversial move to dismantle its federal cryptocurrency fraud enforcement team—a decision that could further erode investor protections.
