18 Attorneys General Oppose Clarity Act Ahead of Senate Vote
On September 14, New York Attorney General Letitia James and a bipartisan coalition of 17 other attorneys general urged Congress to reject the Clarity Act. The proposed legislation aims to establish a federal regulatory framework for cryptocurrencies but faces criticism from state regulators who argue it could weaken their ability to combat fraud and protect investors. The group highlighted that states have been instrumental in enforcing anti-fraud measures, having brought over 330 crypto-related enforcement actions since 2017. They warned the bill as written might strip attorneys general of critical authority. The Clarity Act evolved from earlier bipartisan efforts like the Responsible Financial Innovation Act and advanced through the Senate Banking Committee with a narrow vote. With a key procedural vote scheduled for Tuesday, supporters are pushing to secure enough Democratic support to overcome potential filibusters. While revised provisions include state roles in ethics enforcement, concerns remain about broader implications on existing state powers.
Topics: attorney general action Clarity Act crypto regulation fraud prevention