US Crypto Bill Faces Fresh Hurdle Ahead of Critical Senate Vote

The US crypto bill, known as the Clarity Act, has hit another hurdle before its critical Senate vote on Tuesday. The bill's revised text includes changes to ethics rules, state enforcement, and a stablecoin-rewards circuit breaker.

However, New York Attorney General Letitia James and 17 other attorneys general have voiced opposition to the bill, citing concerns that federal preemption could weaken state registration authority and investor-protection cases. The coalition argues that the measure could make fraud enforcement harder for state prosecutors.

The bill's supporters claim that it would establish a federal framework for digital assets and reduce regulatory uncertainty for market participants. However, banking groups have expressed concerns about the language surrounding stablecoin rewards, with some calling for clearer restrictions to prevent deposits shifting from community banks into payment stablecoins.