Statutory Configuration
SEC / CFTC Exclusive Jurisdiction
Removes concurrent state AG investigatory & subpoena powers
State Antifraud Carve-Out
Expressly preserves Martin Act / State Blue Sky common-law fraud enforcement
Bipartisan Warning: Over 30 state Attorneys General argue that stripping state anti-fraud authority creates an enforcement void before federal regulators can respond to localized predatory token schemes.
Preemption Impact & Deficit Assessment
Lead State
Jurisdiction Status
Preempted
Federal displacement of state authority
State Authority Retention
Independent subpoena & civil enforcement
Investigative Power Risk
Critical
Ability to halt active consumer scams
Est. Unprotected Volume
$12.50B
Resident crypto capital exposed to preemption
Active Jurisdiction Profile: New York
Lead State (Bipartisan Coalition)
Statutory Legal Instrument:
Martin Act (General Business Law § 352)
Estimated Annual Fraud Inquiries:
1,840
Directly Affected Retail Investors:
450,000
Federal Preemption Mechanism:
Express Preemption (Blue Sky Displaced)
Coalition Alignment & Congressional Action
H.R. Market Structure Counter-Drafting
Under broad federal preemption without an express state antifraud carve-out, New York's Martin Act power is displaced. Civil enforcement actions against fraudulent digital asset promotions will be barred at the state level, deferring restitution solely to the SEC and CFTC.
Export state-by-state impact & conflict ledger