Minnesota AG Opposes Federal Crypto Bill over Scam Losses
Keith Ellison joins 15 other state attorneys general in opposing a federal bill they say undermines state fraud enforcement. Minnesota residents lost $10 million to crypto scams in 18 months.
Minnesota Attorney General Keith Ellison joined a coalition of 16 state officials to oppose the Digital Asset Market Clarity Act. The group argues the federal bill restricts state power to prosecute cryptocurrency fraud. Ellison’s office cites $10 million in local losses from crypto scams in the last 18 months.
The coalition includes attorneys general from both political parties. They sent a letter to Senate Banking Committee leaders Tim Scott and Elizabeth Warren. The letter claims the bill allows the SEC to preempt state registration authority over digital assets. This change would limit state ability to pursue fraud cases independently.
State fraud enforcement faces federal limits
The letter lists Arizona, Connecticut, Delaware, and the District of Columbia among signatories. It also includes Illinois, Kansas, Maryland, and Michigan. New Jersey, New York, Nevada, and Ohio are part of the group. Virginia, Washington, and Wisconsin completed the coalition of 16 states.
Ellison’s office states the Consumer Action Division has received hundreds of complaints since 2019. These complaints involve crypto-based scams. The coalition believes federal preemption would weaken these state-level enforcement actions. They argue this shift reduces accountability for digital asset fraud.
National scam losses rise sharply
The FBI reported $11.4 billion in losses from cryptocurrency-related complaints in 2025. This figure represents a 22% increase from 2024. The average reported loss per victim was $62,604. The Federal Trade Commission reported $1.78 billion in losses in 2025. This marked a 25.6% increase from the previous year, according to GN markets/crypto (en-US) data.
Minnesota’s losses align with this national trend. The state’s $10 million in losses accounts for more than half of all scam losses reported to the office. This highlights the significant financial impact on local residents. The data underscores the urgency of the regulatory dispute.
Kiosk ban targets specific scam vectors
A Minnesota law banning cryptocurrency kiosks took effect on August 1. From 2023 to 2025, the state recorded 134 complaints linked to these kiosks. Reported losses from these specific incidents reached nearly $1 million. This targeted regulation reflects a state-specific approach to mitigating fraud risks.
States have brought more than 330 anti-fraud enforcement actions since 2017. These actions targeted scammers within the crypto ecosystem. The coalition seeks to preserve this state-level capability. They argue federal intervention would disrupt established enforcement mechanisms.
