US Crypto Bill Hits Fresh Hurdle Before Critical Senate Vote

The US Senate's Clarity Act update, aimed at regulating the crypto market, has hit another hurdle before its critical vote on Tuesday. New York Attorney General Letitia James and 17 other attorneys general have written to lawmakers urging them to reject the bill.

The coalition's main concern is language allowing the Securities and Exchange Commission (SEC) to preempt state registration authorities. They argue this could create uncertainty around state securities oversight and make it harder for state prosecutors to pursue cases against crypto scams and platforms that violate state law.

The revised Clarity Act update does address some concerns, including adding ethics rules and giving state attorneys general a role in enforcing conflict-of-interest restrictions for covered federal officials. However, the bill still faces opposition from banking groups who want tighter limits on stablecoin rewards.