State Attorneys General Oppose Clarity Act Over Federal Preemption Concerns

A bipartisan group of state attorneys general has expressed concerns over the Digital Asset Market Clarity Act, arguing that it would restrict states' ability to bring lawsuits against online scams under their existing securities and commodities authorities.

The letter, signed by 18 attorneys general from states and the District of Columbia, warns that the bill's language is ambiguous and might allow defendants to block states from taking enforcement actions. The state officials urge lawmakers to vote no on the bill without any changes.

The attorneys general cited the FBI's finding that $11.4 billion had been stolen from investors last year through crypto, emphasizing the need for states to retain their authority to oversee the securities and commodities markets.