[New York Attorney General Warns Clarity Act Will Weaken State Crypto Enforcement Powers] According to The Block, New York Attorney General Letitia James warned in written testimony that the Clarity Act would weaken states' ability to enforce actions against fraud in the crypto industry. She stated that the act 'interferes with and takes precedence over state investor protection laws, undermining state prosecutors' ability to pursue fraud cases.' James urged Congress to strengthen anti-money laundering and ethical safeguard provisions, including barring federal officials from regulating industries they profit from during and up to one year after their tenure. She also called for DeFi platforms to assume intermediary responsibilities and for a ban on crypto asset transactions that cannot be fully traced. James' testimony comes as the Senate moves forward with a vote on the Clarity Act.