18 State AGs Oppose CLARITY Act Ahead of Senate Vote

18 state attorneys general oppose the CLARITY Act, warning its federal framework could change state authority over crypto markets.

New York Attorney General Letitia James led 17 other state attorneys general against the current CLARITY Act. The bipartisan group called on Congress to rethink provisions that impact state regulation of digital assets.

Before Tuesday’s procedural vote, the group sent a letter to Sens. Tim Scott and Elizabeth Warren. Meanwhile, legislators are getting ready for a key vote on the 635-page market structure bill.

State Officials Raise Concerns Over CLARITY Act

The attorneys general noted that the law might cause confusion about state enforcement authority. They raised in particular concerns about restrictions on investigations into cryptocurrency fraud and scams.

Letitia James’ office has been a key driver in the investigation of crypto misconduct, she said. She said she believed the removal of state authority would leave investors with less enforcement options.

Related reading: Ripple May Unlock More XRP After CLARITY Act 

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