A bipartisan coalition of 18 state attorneys general, led by New York’s Letitia James, is urging Congress to reject the CLARITY Act as currently written, ahead of Tuesday’s key procedural vote. James said the bill “would embolden scammers” in its current form. The coalition argues the legislation could weaken states’ ability to pursue crypto fraud and investor-protection cases, while giving the SEC expanded power to override state registration rules. The group is calling on Congress to preserve existing state enforcement authority and clarify language they warn could trigger legal disputes over regulatory oversight.
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