18-State Coalition Urges Congress to Reject CLARITY Act Over Scam Fears

New York Attorney General Letitia James is leading an 18-state bipartisan coalition urging Congress to reject the CLARITY Act, a crucial piece of crypto legislation. The bill would allegedly empower 'predator scammers' and worsen the current epidemic of online crypto scams, according to AG James.

In a letter addressed to Senate Banking Committee Chairman Tim Scott and member Elizabeth Warren, James expressed concerns that the anti-fraud language in the bill is too vague, offering legal loopholes for scammers to exploit. The law enforcer also stated that the bill would strip states of their authority to oversee securities and commodities markets, potentially overriding US Securities and Exchange Commission (SEC) guidelines.

The AGs' statement comes shortly after Republicans released an 11th-hour version of the proposed Clarity Act, which includes language giving state AGs a role in enforcing conflict-of-interest bans on federal officials. However, the bipartisan coalition expressed dissatisfaction with these provisions, calling for Congress to reject the bill tomorrow.