State AGs Sound Fraud Alarm Over Digital Asset Market Clarity Act Vote

A bipartisan group of 18 state attorneys general has sounded an alarm about the potential for increased cryptocurrency fraud and scams if the 'Digital Asset Market Clarity Act' is passed.

The bill, up for a vote in the US Senate on September 15, could weaken states’ ability to protect investors from these issues, according to the AGs. They argue that the legislation would hinder their efforts to investigate and prosecute fraud cases involving digital assets like Bitcoin (BTC-USD) and Ethereum (ETH-USD).

The Digital Asset Market Clarity Act aims to provide a national framework for regulating cryptocurrency markets, but the 18 state attorneys general are concerned it would preempt state laws and limit their ability to protect investors.