State Attorneys General Oppose CLARITY Act Provisions Limiting Enforcement Power

A bipartisan coalition of 18 state attorneys general has expressed concerns about provisions in the CLARITY Act that they believe could limit their ability to enforce consumer protection laws and oversee digital asset markets.

Led by New York Attorney General Letitia James, the coalition argued that the proposed crypto market structure legislation could weaken state authority to investigate fraud, scams, and other harmful digital asset activities.

The attorneys general said they support creating a clear federal framework for digital assets but want states to maintain their existing enforcement powers alongside federal regulators.