New York AG Letitia James and 17 other state attorneys general are opposing the CLARITY Act, warning it could weaken states’ ability to crack down on crypto fraud. Supporters want a cleaner federal framework, but critics say scammers shouldn’t get a free pass.
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A bipartisan group of 17 state attorneys general is urging the Senate to scrap the CLARITY Act, warning it could weaken state crypto enforcement and hand too much power to federal regulators. The fight now centers on federal preemption, stablecoin rules, and whether Washington is fixing crypto or just smothering honest builders.
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The CLARITY Act is stuck in the Senate as Democrats hammer weak ethics, enforcement, and consumer protections, while stablecoin yield remains a separate roadblock. The bill isn’t dead yet, but the votes — and the trust — are clearly missing.
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The CLARITY Act is getting jammed up in the Senate over a blunt question: who should enforce crypto ethics rules on senior officials — state attorneys general or the DOJ? With recess closing in, the fight is threatening to delay a bill meant to finally bring order to U.S. crypto regulation.
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