State AGs Unite Against CLARITY Act, Citing Enforcement Concerns
A bipartisan group of 17 state attorneys general has urged the US Senate to reject the CLARITY Act, citing concerns that the bill could restrict their authority to pursue crypto fraud and protect investors.
New York Attorney General Letitia James led the group in a letter sent Monday to Senate Banking Committee Chair Tim Scott and ranking Democrat Elizabeth Warren, warning that provisions in the legislation could give federal regulators new authority to override parts of state securities regulation.
The attorneys general argued that unclear preemption language in the bill could invite legal challenges over states' existing powers to pursue misconduct, and could embolden scammers. They also pointed out that the revised bill still did not address their enforcement concerns, despite some changes aimed at addressing disputes surrounding the legislation.