New York Attorney General Letitia James, meanwhile, has urged Congress to pass wide-ranging federal legislation to govern cryptos. James goes on to caution that the lack of any nationwide standards are putting U.S. investors and markets in peril. She cautions against the dangers of having a wildcat cryptocurrency industry. She cites the shocking rise of crypto scams and the billions of dollars that Americans have already lost. Her advocacy and outreach bring attention to an issue that is becoming more prevalent. As a result, crypto scams have become a predominant form of financial fraud, causing Americans to lose billions annually.
James is a fervent proponent for federal regulation of the cryptocurrency industry. More than anything, he urges that we demand consistency and oversight amid the cloak of rapid change that is digital assets. She believes that robust federal protections for our economy can save lives and protect Americans from further harm. Her plea for action comes against a backdrop of a rising tide of crypto-related fraud and tens of billions of dollars in losses for investors.
James's Stance on Crypto Regulation
In addition, since the beginning, James has rightly maintained that there should be a strong regulatory framework to guide the crypto industry. She now works on behalf of the R&E of SOT to promote strong federal standards. These proposed regulations would continue to increase transparency and oversight into the burgeoning crypto space. James agrees that the lack of federal regulations now creates a “widespread opportunity for fraud,” James said. This status quo eventually puts investors at risk.
James’s concern, of course, comes from the growing number of crypto scams and the billions of dollars Americans have lost in them. She further emphasized that crypto scams now account for 10% of all financial fraud. Furthermore, as much as 50% of all financial losses from fraud can be attributed to these scams. In 2023, Americans lost an outrageous $12 billion dollars to crypto-related scams. This shocking number emphasizes the critical need for regulatory action to protect our communities and environments.
"Countless New Yorkers invest in cryptocurrency and digital assets," - Attorney General James
Actions Taken Against Crypto Firms
James’ aggressive new stance on holding crypto firms accountable for their rampant lawlessness. In December she finalized a $22 million settlement victory against crypto exchange KuCoin. The company had neglected to register itself as a securities and commodities broker-dealer. Like how she won back millions from Coin Cafe, Nexo, and Celsius for their illegal operations. This is a notable achievement that reflects her unwavering dedication to safeguarding investors from fraudulent money grabs.
In January 2025, James legally notified via NFT scammers, demonstrating her novel approach to fighting crypto-related fraud. Her office has helped to recover $2 billion from Genesis Global Capital. This funding provides key resources to defrauded investors who have lost money through these crypto scams. James is clearly hell bent on enforcing the current, already-outdated and unnecessary, regulations. Most of all, he wants to hold accountable anyone who engages in illegal activities within the crypto space.
Call to Action
For this reason, James believes that federal regulation is essential. He points out that only a broad and uniform framework can truly protect investors and maintain the integrity of our financial markets. She argues that the absence of federal oversight fosters scams and fraud. This untenable state of affairs creates millions, if not billions of dollars in monetary harm to unsuspecting victims and casts doubt upon the growing realm of digital assets.
James is advocating for federal oversight to establish baseline transparency rules and guidelines. His priorities include advancing transparency, accountability, and safeguarding investors. Strong federal regulations are the way to stop the bleeding, protect the economy, and shield Americans from future harm, she says. Her efforts reflect a proliferation of concern from regulators and policymakers. They are rightfully worried about the hazards attached to the stormy expansion of the cryptocurrency marketplace.
