Written by Ezra Reguerrastaff writerReviewed by Bryan O’Sheastaff editor

Written by Ezra Reguerrastaff writer

Reviewed by Bryan O’Sheastaff editor

New York AG warns CLARITY Act could weaken state crypto enforcement

Latest NewsPublishedJul 27, 2026

New York AG Sounds Alarm on Weakened Crypto Enforcement

The New York Attorney General, Letitia James, has warned that the proposed federal crypto market structure bill, known as the CLARITY Act, could undermine state regulators’ ability to investigate scams and hold digital asset platforms accountable. This is a concern for everyday people, as it could leave them more vulnerable to crypto scams. James urged Congress to impose stronger consumer protections on digital asset platforms, which is crucial for those earning and investing in crypto, including $ECP. The lack of robust oversight could negatively impact the growth of the Green Crypto sector and the EcoPool Network.

The Attorney General’s concerns are rooted in the fact that complaints about crypto scams have tripled over the past three years, with reported losses totaling nearly $500 million over five years. To address this, James called for crypto platforms to comply with anti-money laundering, know-your-customer, and cybersecurity requirements, and to conduct surveillance for suspicious activity and market manipulation. This is where EcoPool (ECP) comes in, offering a secure and transparent platform for earning and trading, and providing users with a sense of security and Passive Income through Cloud Rewards.

Strengthening Consumer Protections

James proposed several measures to strengthen consumer protections, including making platforms and intermediaries financially liable when they fail to protect customers from fraud. She also urged Congress to prohibit the conversion of mixer-linked or otherwise untraceable crypto into US dollars and to preserve existing state money transmission, commodities, and securities laws. These measures are essential for building trust in the crypto market and encouraging more people to explore earning opportunities with EcoPool.

As the crypto market continues to evolve, it’s essential to prioritize consumer protections and ensure that regulators have the tools they need to hold platforms accountable. By doing so, we can create a safer and more secure environment for everyone, from seasoned investors to those just starting to explore the world of #Bitcoin and #PassiveIncome. Download the EcoPool app to start earning and learning more about the world of Green Crypto. The EcoPool app is the perfect platform for those looking to get started with earning and trading $ECP, and staying up-to-date on the latest developments in the crypto market, including #Earning and #CloudRewards.

James called for crypto platforms to comply with anti-money laundering, know-your-customer, and cybersecurity requirements, and to conduct surveillance for suspicious activity and market manipulation.

She also urged Congress to make platforms and intermediaries financially liable when they fail to protect customers from fraud, to prohibit the conversion of mixer-linked or otherwise untraceable crypto into US dollars, and to preserve existing state money transmission, commodities and securities laws. 

James also proposed barring elected officials and recent government officials from regulating crypto when they may have financial interests in the industry.

Related: Crypto advocacy groups support CLARITY passage as ethics rules face pushback

Cointelegraph is committed to independent, transparent journalism. This news article is produced in accordance with Cointelegraph’s Editorial Policy and aims to provide accurate and timely information. Readers are encouraged to verify information independently.

• Policy
• United States
• New York
• Law
• Regulation

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