State Regulators Sound Alarm Over Looming Weakening of Crypto Oversight – Sri Lanka Guardian
State securities regulators are raising concerns that their ability to prosecute cryptocurrency-related fraud could be sharply curtailed under draft legislation making its way through Congress — just as federal enforcement against digital-asset companies hits its lowest point in years.
According to a Bloomberg report, regulators from Alabama to Montana warn that the Responsible Financial Innovation Act, a Senate market-structure bill, could strip states of implicit authority to supervise crypto companies. That oversight gap, they argue, would leave investors vulnerable at a time when criminal activity in the sector is accelerating.
“The dam is going to break,” said Amanda Senn, director of the Alabama…
