Attorneys General Oppose CLARITY Act, Citing Sovereignty Concerns

A bipartisan coalition of attorneys general, led by New York State Attorney General Letitia James, is urging the U.S. Senate to reject a major cryptocurrency bill.

The CLARITY Act aims to create a new federal regulatory framework for the $2.3 billion cryptocurrency market. However, the attorneys general warn that it would limit states' ability to oversee the securities and commodities markets.

The Senate is poised to hold a procedural vote on Tuesday to move forward with the bill. The attorneys general argue that the CLARITY Act could infringe on state sovereignty and hinder their efforts to protect investors and consumers.