State AGs Push Back Against CLARITY Act Amid Senate Vote Looming
The CLARITY Act is set to face a crucial vote in the US Senate on Tuesday, after President Donald Trump agreed to most of a bipartisan package aimed at tightening ethics rules for federal officials with crypto-related interests.
The bill is designed to create a federal framework for how digital-asset markets are regulated, including clearer lines between the SEC and the CFTC. However, not all opposition has been softened by this compromise.
A group of 18 state attorneys general, led by Letitia James, is urging senators to reject the legislation, arguing that the bill's changes would undermine state authority to investigate and take action against crypto companies accused of fraud or misconduct.
The attorneys general claim that while the revised bill reserves certain powers for states to prosecute fraud, these provisions are often ambiguous, unclear, or confined in ways that could enable challenges to state law-enforcement authority or restrict how aggressively states can continue addressing what they describe as a 'scam epidemic.'