State Attorneys General Oppose Clarity Act Over Crypto Enforcement Powers
Eighteen state attorneys general have sent a letter to the U.S. Senate urging them to amend or reject the Digital Asset Market Clarity Act over concerns about enforcement powers.
The bipartisan group, which includes Letitia James and Rob Bonta, argues that the bill's current language could let federal rules override state authority in pursuing crypto-related fraud and securities cases.
The attorneys general warn that the ambiguous language threatening state anti-fraud authority could give defendants room to challenge or block state enforcement actions tied to online scams under existing securities and commodities laws.
The Indian Gaming Association has also expressed opposition to the bill, citing concerns about the expansion of Commodity Futures Trading Commission powers, which it says may preempt state and tribal gaming laws and endanger tribal sovereignty.