The FBI says crypto-related losses topped $11 billion last year. That's the headline from a new report that landed this week. At the same time, New York Attorney General Letitia James is warning Congress that a pending bill could make things worse. She testified in the Senate that the CLARITY Act would weaken state enforcement against crypto scams.
The $11 billion figure
The FBI's tally covers everything from investment fraud to ransomware. It's a staggering number — and it's almost certainly an undercount. Many victims never report losses. The bureau says the figure reflects complaints filed with its Internet Crime Complaint Center. Crypto scams now account for a growing share of the total financial fraud the FBI tracks.
James's Senate testimony
Letitia James didn't mince words. She told senators the CLARITY Act would strip state attorneys general of key tools they use to go after bad actors. James has been one of the most aggressive state regulators on crypto. Her office has taken on exchanges, lenders, and promoters. She argued that the bill would preempt state laws without offering strong enough federal protections.
What the CLARITY Act does
The bill is designed to create a federal framework for crypto regulation. Supporters say it would bring clarity to a patchwork of state rules. But James and other critics say it goes too far. They argue it would block states from enforcing their own consumer protection laws against crypto firms. The timing isn't great — not with the FBI's $11 billion loss report fresh on the table.
The bill's path forward
The CLARITY Act is pending in the Senate. No vote has been scheduled yet. James's testimony this week is part of a broader push by state regulators to slow it down. The FBI report gives them more ammunition. For now, the question is whether Congress listens to the state attorneys general or to the industry lobby pushing for a single federal standard.
