State attorneys general oppose CLARITY Act ahead of Senate vote

6.7 Regulation

Sep 14, 2026

Eighteen state attorneys general urge Congress to reject the CLARITY Act, warning it could weaken state powers to fight crypto fraud and protect investors before a crucial Senate vote.

A bipartisan group of 18 state attorneys general, led by New York Attorney General Letitia James, is urging Congress to reject the CLARITY Act, a significant cryptocurrency market structure bill. The coalition contends that the legislation could undermine states’ ability to combat crypto fraud and protect investors by shifting regulatory authority to federal agencies, especially the SEC, and potentially preempting state enforcement powers. The attorneys general highlight that the bill’s language is ambiguous regarding state powers, which could embolden scammers by making it harder for states to take action against fraud. They argue that, despite recent revisions—including provisions for state involvement in enforcing conflict-of-interest rules and measures related to stablecoins—their main concerns remain unresolved. This opposition comes as the Senate prepares for a key vote that could shape the future regulatory landscape for digital assets in the U.S.