State Attorneys General Oppose CLARITY Act Over Crypto Fraud Concerns
Eighteen state attorneys general have expressed concerns about the current version of the CLARITY Act, which is set to be voted on in the Senate. Led by New York Attorney General Letitia James, the coalition has argued that the bill could undermine states' authority to investigate and prosecute crypto-related fraud cases.
The bipartisan group fears that the CLARITY Act could make it more difficult for states to conduct investigations and pursue cases aimed at protecting investors in the digital asset space. They claim that state agencies serve as the first line of defense against crypto fraud, and that the bill could weaken their ability to do so.
The attorneys general have also expressed concerns about the potential expansion of the Securities and Exchange Commission's (SEC) power to override state-level digital asset registration systems. They are requesting that Congress revise the text to preserve states' existing oversight and registration authorities over digital assets.