Attorneys General Oppose Digital Asset Market Clarity Act Over Crypto Scam Protection Concerns
Attorney General William Tong and a bipartisan coalition of 16 attorneys general have spoken out against the Digital Asset Market Clarity Act, warning that it would jeopardize states' ability to protect investors from cryptocurrency scams.
The coalition, which includes attorneys general from Arizona, California, Delaware, Illinois, Kansas, Maryland, Massachusetts, Michigan, Minnesota, New Jersey, New York, Nevada, Ohio, Virginia, Washington, Wisconsin and the District of Columbia, sent a letter to Senators Tim Scott and Elizabeth Warren in opposition to the Clarity Act.
The attorneys generals argue that as written, the Clarity Act would prevent states from serving as the first line of defense against cryptocurrency fraud. They point out that state enforcement powers have been critical in fighting the crypto fraud epidemic, with over 330 anti-fraud enforcement actions taken since 2017.
According to the FBI and FTC, there were $11.4 billion in losses from complaints involving cryptocurrencies in 2025, an increase of 22% from 2024, with an average reported loss of $62,604.